iTunes Gift Cards & NJ's Music/Video Download Tax

[LimeiBook86]

I have a quick and silly question for you guys today. This year in the state of New Jersey there is now a tax on all digital music & video downloads, including the iTunes store. Now I purchased an iTunes gift card from a store, if I entered this into iTunes and purchased something I wouldn't get taxed right? I was just curious what would happen if I bought something, since I already paid for the gift card, I don't know if that would count as purchasing an item since I have the credit from the gift card. So I'm a bit confused...

Anyway, if anybody has had any experience with this or knows if I would be taxed or not I would appreciate it if you'd let me know, thanks in advance.

 

[OldSkoolNJ]

You should have paid tax on it when you bought it in the store. When ours ring up in the store they ring up with the sales tax already on it. So when a customer buys a $15 giftcard it costs them $16.05 and in the end they still have a $15 gift card.

Kevin

 

[LimeiBook86]

You should have paid tax on it when you bought it in the store. When ours ring up in the store they ring up with the sales tax already on it. So when a customer buys a $15 giftcard it costs them $16.05 and in the end they still have a $15 gift card.

Kevin

Well when I bought the gift card I didn't pay tax. The receipt backs, this up. Hmm so I guess I might pay when I use it online?

 

[Foxglove9]

No it won't ask you to pay extra when you redeem it.

Since you did buy the card in NJ, I'm thinking that the clerk who rung you up just didn't put tax on it, or maybe the law didn't go into effect yet, or perhaps some stores didn't update their systems to reflect tax.

 

[katie ta achoo]

In Texas, the $15 card costs $15 in store, and downloads cost $1.07 (99 cents + 8.25% tax).

maybe it works like that?

 

[MattyMac]

I live in NJ. You won't pay tax when you buy the card...you will pay $1.06 for each song.

Here is a thread I started back in January.
https://forums.macrumors.com/threads/265765/

 

[LimeiBook86]

I live in NJ. You won't pay tax when you buy the card...you will pay $1.06 for each song.

Here is a thread I started back in January.
https://forums.macrumors.com/threads/265765/

D'oh! Anyway, thanks for the information!

 

[OldSkoolNJ]

*Stands corrected*

I checked when I got to the store. It should charge you as they said when you redeem the card.

Kevin