State Reminds Shoppers There's No Tax on Gift Cards

Patch File Photo
Patch File Photo

The commissioner of the state Department of Revenue Services reminded consumers Tuesday that gift cards and gift certificates are not subject to Connecticut sales tax.

The warning, issued by DRS Commissioner Kevin B. Sullivan, wasn't just for shoppers ... it was also aimed at retailers.

“People are used to the tax commissioner telling them to pay their taxes, but this isn’t your father’s tax department and I don’t want people to pay more tax than their fair share," Sullivan said. "Retailers that sell gift cards and gift certificates should not charge sales tax on those items.”

Sullivan said customers who are charged sales tax on their gift cards or gift certificates this holiday season should return to the store with the receipt and ask for a refund.

“A gift card is the same as a gift of cash; no tax is due until that gift is used," Sullivan said. “When people use those gift cards to purchase taxable items, that is when stores should charge and collect Connecticut sales tax.”

If you have any questions about the state's sales and use tax, you can visit the Department of Revenue Services (DRS) website at www.ct.gov/DRS or call 1-800-382-9463 outside the greater Hartford area (or 860-297-4753 from anywhere).


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