New Jersey Sales Tax Revenue Losses Fall Between $64 - $94 Million due to Gift Card Law

more+
less-

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.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Business Organization Updates, General Business Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© James McDonough, Scarinci Hollenbeck | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »