S T A T E O F N E W Y O R K
________________________________________________________________________
2389
2025-2026 Regular Sessions
I N A S S E M B L Y
January 16, 2025
___________
Introduced by M. of A. GANDOLFO, DURSO -- Multi-Sponsored by -- M. of A.
BARCLAY, BRABENEC, DiPIETRO, FRIEND, HAWLEY, McDONOUGH, PALMESANO,
STECK -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to exemptions from sales and
use taxes for gift certificates, electronic gift cards and magnetic
gift cards
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 47 to read as follows:
(47)(A) GIFT CERTIFICATES, ELECTRONIC GIFT CARDS AND MAGNETIC GIFT
CARDS.
(B) FOR THE PURPOSE OF THIS PARAGRAPH: (I) THE TERM "GIFT CERTIFICATE"
MEANS A WRITING IDENTIFIED AS A GIFT CERTIFICATE BY AN ISSUER FOR USE BY
A CUSTOMER, WHETHER OR NOT REDEEMABLE FOR CASH, AND USABLE FOR ITS FACE
AMOUNT IN LIEU OF CASH FOR THE EXCHANGE OF GOODS OR SERVICES SUPPLIED BY
THE SELLER. GIFT CERTIFICATES SHALL INCLUDE ELECTRONIC OR MAGNETIC CARDS
WITH A BANKED DOLLAR VALUE, A MERCHANDISE CREDIT, A CERTIFICATE WHERE
THE ISSUER HAS RECEIVED PAYMENT FOR THE FULL FACE VALUE FOR THE FUTURE
PURCHASE OR DELIVERY OF GOODS OR SERVICES, AND ANY OTHER MEDIUM THAT
EVIDENCES THE GIVING OF CONSIDERATION IN EXCHANGE FOR THE RIGHT TO
REDEEM IT FOR GOODS OR SERVICES OF AT LEAST AN EQUAL VALUE. PRE-PAID
CALLING ARRANGEMENTS, SUCH AS PRE-PAID PHONE CARDS, ARE NOT CONSIDERED
GIFT CERTIFICATES; (II) THE TERM "ELECTRONIC GIFT CARD" OR "MAGNETIC
GIFT CARD" MEANS A CARD WITH A BANKED DOLLAR VALUE THAT MAY BE REDEEMED
FOR GOODS OR SERVICES WHEREBY THE DOLLAR AMOUNT OF THE CARD IS REDUCED
ACCORDINGLY.
§ 2. This act shall take effect on the first day of a quarterly sales
tax period, as set forth in subdivision (b) of section 1136 of the tax
law, next succeeding the thirtieth day after it shall have become a law.
Provided, however that the commissioner of taxation and finance shall
take any action necessary for the timely implementation of this act on
or before the date on which it shall have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
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