Comments on: New Mexico's new gift certificate law

By: Andrea Feucht

Andrea Feucht — Tue, 30 Jun 2009 18:27:07 +0000

Linda,

It definitely depends on a lot of things — everything from which state you're in, to the policies of the business that the Gift Certificate came from, even your previous relationship with that business.

If the GC is legally expired, the business does not have to honor it, but it is in their best interest to do so to keep you as a customer. If it is expired under a law like New Mexico's, they do NOT still have your money — they are required to turn it over to the state as unclaimed property.

Long story short, "it depends." Give them a call or stop by and ask.

By: Linda

Linda — Mon, 15 Jun 2009 15:34:52 +0000

I have several gift certificates that I had misplaced and therefore have never been used, or I have some that I would just forget to take with me when I went out. Although I have recently relocated them, most are 5 years old or older. Are businesses still required to honor them? After all, they still have my money.

Thank you, Linda

By: Michelle

Michelle — Wed, 09 May 2007 19:17:33 +0000

Thank you for this post! Please keep us up to date on what happens with NM and other states.

By: Larry Donahue

Larry Donahue — Wed, 09 May 2007 14:04:20 +0000

Debbie, we're doing more research to update our knowledge of all the state laws, and will be publishing more articles to summarize all the states and what to do about it.

Thanks, Skip, for the reminder about IRS requirements for GC reporting. I'm going to do more research, and post it on the blog in short order. If we have any CPA's or tax folks who know about this, we'd love to hear what you have to say!

Larry.

By: Angel

Angel — Tue, 08 May 2007 15:59:04 +0000

By your register receipts you are already paying taxes in some way on this money in some fashion. On top of that you pay out money to the credit card companies if that is the method of payment. The over head on a GC is not considered when New Mexico requires you to turn in all of the money. This is new law is absolutely ridiculous and unthought through.

By: Skip Williams

Skip Williams — Mon, 07 May 2007 16:09:53 +0000

Dear Larry,

Glad to see that you are on top of this. Unfortunately many Spa Owners depend on broken GC sales to provide profit, but I, like your advice, advise that we do everything we can to get recipients of GCs in so that we can convert them to long term Clients. Spas stand to make much more from a loyal Client than a broken GC.

Larry could you clarify how this new law in NM conflicts with IRS (Federal) law? I believe, and you would know better, that the IRS forces us to convert the liability to revenue after a specified amount of time doesn’t it? And if it does, then doesn’t the new NM law then conflict, and which one would supersede the other?

Best Wishes & Healthy Profits
Skip Williams

By: Debbie Hirsch

Debbie Hirsch — Sun, 06 May 2007 12:51:10 +0000

WOW!!! I had no idea laws like this existed. This is very anti-small business owners! I would be curious to know what the law is for the State of Georgia.