Bill > A02389

This bill amends the New York tax law to create a sales and use tax exemption for gift certificates, electronic gift cards, and magnetic gift cards. The bill provides detailed definitions for these terms, specifying that a "gift certificate" includes any written or electronic medium representing a prepaid value that can be exchanged for goods or services, such as cards with a banked dollar value or merchandise credit. The definition explicitly excludes pre-paid calling arrangements like phone cards. An "electronic gift card" or "magnetic gift card" is defined as a card with a banked dollar value that can be redeemed for goods or services, with the card's value decreasing as it is used. The exemption will take effect on the first day of a quarterly sales tax period following 30 days after the bill becomes law, and the tax commissioner is authorized to take necessary implementation steps in advance of the effective date. This legislation aims to clarify and standardize the tax treatment of various forms of gift cards and certificates, potentially providing consumers with more flexibility in their purchases.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2389