New Jersey Sales Tax Revenue Losses Fall Between $64 – $94 Million due to Gift Card Law
By James F. McDonough, Jr.
A recently-enacted New Jersey property law may result in revenue losses totaling
between $64 and $94 million dollars, according to an industry study.
New Jersey recently implemented a law that allows the state to seize the value of
unredeemed gift cards if consumers do not make purchases within a two-year period after purchase. As a result, many providers including American Express, InComm and Blackhawk Network announced that they may discontinue operations in New Jersey.
"While our main concern is the negative impact this law will have on retailers and
consumers in New Jersey, and we are fearful many more businesses will make the
extremely difficult decision to no longer operate in the state, what is also becoming clear is the significant, negative fiscal impact this will have on state revenue,” said Rebekka Rea, executive director of the Retail Gift Card Association.
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