Gift Card Tax?????

[backlund]

I was looking to purchase a gift card on your site, but I noticed that it charges Tax when you try to check out. Considering that it is used like cash, there shouldn't be any Tax charge on gift cards. Is there a way to resolve this?

[Artist Boy]

As stated in the Terms and Conditions:

HAWAII GENERAL EXCISE TAX

Volcanoecigs.com is owned and operated in the state of Hawaii. Hawaii does not have a sales tax; instead, we have the general excise tax, which is assessed on all business activities. The tax rate is .15% for Insurance Commission, .50% for Wholesaling, Manufacturing, Producing, Wholesale Services, and Use Tax on Imports For Resale, and 4% for all others. This tax rate is applied to all purchases made from Volcanoecigs.com in accordance to our state laws and tax code.

[Spliner]

Kinda like everything else.. you buy a car you pay sales tax.. then you have to pay tax to continue to own it each year.. then.. you sell it.. and that person has to pay sales tax yet again on the purchase. Funny thing is that even if you don't get taxed on online orders you are supposed to pay an equivalent 'use' tax on the item but nobody does. If the feds ever audit you they can pull that out of their back pocket if they want and make you pay it. Catch 22. Makes you want to take all your zombie apocolypse supplies and go hide in the woods for a while doesn't it!?!?!



Spliner

[balthisar]

Dumb question: so if I buy a gift card and pay the tax, and then use the gift card to order, would I be charged an additional tax?

Does the same thing go if I were to come to Hawaii and buy a, say, Sears gift card? I can see a potential business opportunity in black market, mainland gift cards!

[Maddoktor2]

Dumb question: so if I buy a gift card and pay the tax, and then use the gift card to order, would I be charged an additional tax?

Pretty much, yes - "applied to all purchases" (italics mine for emphasis) means exactly what it says - basically, Hawaii's excise tax nicks you both coming and going in a case like that.

[Vika Maya]

Tax with on Gift Cards too.... come on

[geekdgirl]

It's state regulations....

[RebelAir]

Volcano doesn't ahve a say in the matter. They tried going without charging them tax and the State of Hawaii slapped them with a huge bill at the end of the year (at least, that's what I heard).
The Land of Surf and Sunshine needs to pay their bills, so they insist on taking their share of your money.

Just as an aside, Texas is introducing a bill to do the same -- tax all internet sales.

[geekdgirl]

Most states are looking to grab their piece of that pie...and you're technically supposed to report all internet purchases so you can pay taxes when you file...

[Elwingeria]

May sound like a ridiculousness question. . but I can't even seam to find where to put my gift card information when I check out. . .