Taxing MicrosoftPoints?

Brick and mortar stores are taxing MicrosoftPoints Cards.  Can they do this?  I thought it was illegal to tax gift cards.

 

Question Info


Last updated July 4, 2018 Views 4 Applies to:

Microsoft Points cards aren't gift cards, because (as I understand it) Points aren't a currency but  "stored value system". Microsoft doesn't charge sales tax when you buy sometime with Points-- it's 400 Points for something, not 400 + 8% or whatever your local sales tax is-- so it seems OK to charge sales tax on the Points cards.

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