Gift card and double tax?

[gotwhatchuneed]

I have noticed a couple smaller local stores offering gift cards and I was going to buy one but changed my mind when it was rung up with tax, I then asked if someone made a purchase with the card would it be tax free and I was told no any purchases made with the card would also be charged tax.

Is this even legal? it seems your paying tax twice on the same dollars, either that or someone is lining their pocket under the guise of sales tax. This would have been the first gift card I ever bought so I apologize if it's a really dumb question and all gift cards get the same "double tax"

If this is the case I will never buy one ever because my math says this adds up to 28% sales tax on gift card dollars instead of 14% on cash, may as well give someone cash.

[birds-lover]

Someone is double dipping!

We bought a $50.00 gift card for someone and it cost us $50.00, no more, no less.

[pierrelebel]

"Is this even legal?"

The clerk simply made a mistake if it was a gift card.

Now, if you purchase a cell phone prepaid card, you will be charged tax on it (a $100 card will cost $113 in Ontario).

When the taxable $0.35 charge per minute is deducted from your account, no tax is charged at that time, avoiding double taxation.

[stevephinn2012]

Someone is double dipping

I would not accuse anybody of intentionally doing anything wrong, they may just not know any better. It's not as if the owner makes any extra money of charging you sales tax as it is recorded and then sent to the government. It's not like they charge people taxes then put that money in their pocket.

I think it's an honest mistake