In 2010, the state of New Jersey enacted legislation that forced gift card distributors to collect information about the card’s purchasers. The goal of the legislation was to increase state revenues by deeming unused gift cards eligible for escheatment. Instead, the controversial legislation resulted in some major distributors, including American Express, ceasing their distribution and sale of gift cards in New Jersey, thus reducing the state’s tax revenues associated with the sales.
In response, the state legislature is now considering a bill that would reverse the 2010 law. The bill, New Jersey AB 1871, has passed the state assembly and is now before the state senate for debate and review.
UPRR will keep you informed about the latest developments with New Jersey AB 1871. For immediate bill information go to: New Jersey UP Gift Card Repeal