Is there a tax on Visa gift cards?

Question

or any of those prepaid debit card things?

if so how much is the tax in NY if it is a $100 gift card?

Answer 1

No, no sales tax.  If you purchase something with it that's taxable, you'll pay the sales tax at the time of purchasing the item.

Answer 2

Nope.  At least no income tax.

You will have to pay applicable sales tax on anything you purchase with it.

Answer 3

There is no tax collected on gift cards.  I hope you got one that doesn't expire.  Companies collect billions each year from expired gift cards.  Cash is better.

Answer 4

No, when you buy those, it is like changing currency - giving $100 and they give you 5 $20s.  They don't charge sales tax on prepaid debit cards because it is just like changing currency.  The person using the card will pay when they make the purchase (unless they buy something that doesn't have sales tax applied to it).

Unlike changing that $100 into $20s, the bank or store selling you the card to give as a gift will probably charge you a fee.  That is how they make their money on the transaction, but it is not sales tax.