Next, subtract the selling price of the phone without the sales tax from the total selling price to get the sales tax amount: Note: If you do not separately state an amount for sales tax, you must post on the premises, or include on the price tag, in an advertisement, or other printed material, a notice stating: "All prices of taxable items include sales tax reimbursement.". The rules for gift cards are different. Card holders either had to file a claim with the bankruptcy court to redeem their credit or say goodbye to their gift card credit. Most retail stores allow you to return things you buy within a reasonable time for a full refund, credit, or an exchange. On the other, the law clearly would not apply to a $100 monthly gym membership (after all, how could it? No cash or ATM access. Funds deposited expire according to how much refilled. The law also places general limitations on fees. Access lines used in wide-area telephone service by common carriers in the conduct of their business. In the case of a gift card, ask the seller if the recipient can add value or "reload" the card. By giving a gift certificate or a gift card, you make it possible for your friend to purchase the particular item or product that he or she wants. Under this scenario, the receiver of the $80 gift card may use the gift card like cash and purchase anything she wants - candles, books, a sweater, whatever the store sells. Maybe not. The 911 and 988 surcharges apply to partial month billings in the full amount. The law prohibits offering any "gift certificate, store gift card, or general-use prepaid card" with an expiration date of less than five years. In Illinois, the combined effect is basically that gift cards and certificates should never expire. The invoice, receipt, or other similar document must show the amount of the prepaid smartphone (cell phone), the amount of the 911 surcharge ($0.30), the amount of the 988 surcharge ($0.08), the amount of local charges ($2.00), and the amount of sales tax ($9.00) at the time of the retail sale of prepaid MTS. Because you do not know your customer's address, you must rely on her mobile phone number to determine if the 911 surcharge, 988 surcharge, and local charges apply. DCA licensed professionals are being targeted by a new scam. Nmero. Definition of 'gift . In California, for example, it's against the law for store gift certificates and gift cards to have an expiration date or dormancy fees (except under certain circumstances), and if the balance on the card is less than $10, you can redeem it for cash. Lost cards usually are replaceable for a fee. Funds on the cards don't expire, though. Consumer Cellular - Best Senior-Specific Prepaid Plans. Access lines for which no charges are billed by a service supplier to a service user. First, sales of prepaid MTS from your California business location are subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). The entire selling price is subject to any applicable local charges unless you can identify the price of the SIM card (from your books and records kept in the ordinary course of business) or the amount of prepaid wireless minutes/airtime is a minimal amount, that is, $5 or less, or 10 minutes or less. Additional Public Benefit Programs . For a state-by-state detailing of gift card consumer protection laws visit the ConsumersUnion web site. In some cases, when your prepaid card expires, you might have to pay a fee so that you do not lose your money. If the gift card was sold at a discount, the card may state an expiration date, but it must be at least 30 days after it was sold. Distributed by the issuer to a consumer without charge under an awards, loyalty or promotional program; Donated or sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes, if the expiration date is 30 days or less after the date of sale; The value remaining on the gift card is $5.00 or less each time the fee is assessed; The dormancy fee is $1.00 per month or less; The card has been inactive for 24 consecutive months (for example, no purchases, "reloading," or balance inquiries); The holder may reload or add value to the card; The card has printed on it a statement in at least 10-point type stating the amount and frequency of the fee, that the fee is triggered by inactivity, and at what point the fee will be charged. A. In the case of a gift card, ask the seller if value can be added to the card or if it can be "reloaded." 7. The money on your card will not expire, however, the physical card will. We offer 4 prepaid data plans for tablets and mobile hotspots. This means that if your card expired but there's still money left on it, you can request that the card issuer sends you a new card (you may be charged a fee) or they may put the remaining balance on a cheque for you. CorePower Yoga structured their gift certificates slightly differentlyi.e., the passes to yoga classes were not tied to any specified dollar amount. The app can only activate a T-Mobile prepaid line. A. If gift : certificate' on a prepaid basis primarily for personal, family, or household purposes to a consumer in a specified amount." Federal law creates different categories of 'gift certificate,' 'store gift card,' If these types of prepaid data service plans can be used to make or receive cell phone calls, as well as for data or text, the sales are subject to the 911 and 988 surcharges, plus any applicable local charges. While those cards could not contain any expiration date or fees, there may be a question about where any unspent portion can be redeemed. Prepaid cell phones have widespread use in the United States. This information may include links or references to third-party resources or content. However, the holder of the certificate or card may have a claim against the bankruptcy estate. Please make sure to check out our resources for sellers (above) if you are a service supplier that also makes retail sales of prepaid MTS to prepaid MTS consumers. This law, however, has a number of exceptions that allow expiration dates or service fees, which include: Cards issued by a bank or other financial institution that can be used at multiple locations, provided that the issuer discloses any expiration date and fees associated with the card. Plans, rates & services are subject to change without notice & are not available in all locations or for all phones. Cal. 10-digit Wireless Number. You sell a prepaid wireless refill card online that is loaded with 200 prepaid wireless minutes to your customer who downloads it directly to her cell phone. In general, only one 911 surcharge and one 988 surcharge apply to each access line. These gift certificates and gift cards are subject to the protections of the gift certificate law. For which no charges are billed by a service supplier to a service user. This avoids the problem of spending additional money on a purchase when it's difficult to find merchandise priced lower than $10. For use in the U.S. only. However she noticed the card had an expiration date after six months. A. This argument has not been tested, and it is doubtful that it would be successful. Customers whose place of primary use is outside of California. But what about the sale of a $100 card good for 5 workouts to the gym? Never give out your personal information to anyone, or you could have your benefits stolen. Most of those locations can also take your passport photo. Since you disclosed the selling price of the cell phone to your customer, the local charges apply only to the $20.00 selling price of the prepaid minutes. / CBS Sacramento. A gift certificate or gift card sold by a seller that seeks bankruptcy protection may have no value. The 911 and 988 surcharges are flat fees that apply to each retail transaction involving a sale of prepaid MTS to a prepaid MTS consumer. The United States, its unincorporated agencies and instrumentalities, or any state of the United States; Any incorporated agency or instrumentality of the United States wholly owned by either the United States, or a corporation wholly owned by the United States; The American Red Cross, its chapters and branches; Banks, including national banking associations, located within the limits of California; Enrolled Indians who are service users subscribing for service from within the limits of an Indian reservation; Federal credit unions organized in accordance with the provisions of the Federal Credit Union Act; Insurance companies, including title insurance companies, that pay the California gross premium insurance tax. There may be other resources that also serve your needs. The fee can vary. A. For example, expiration dates are not allowed for restaurant gift cards issued after January 1997. Mint Mobile - Best Prepaid Unlimited Plans. Common Reasons for Prepaid Expenses Best Plan: Unlimited . Gift Cards don't have expiration dates.There is a "valid thru" date indicated on the front of each Gift Card, which means it can't be used after this date. However the California law does not apply to multiple retailer gift cards such as mall gift cards or bank gift cards including Visa and MasterCard gift cards. Use any remaining value on a gift certificate or gift card. Responding to consumer claims for refunds. This statement may be on the front or back of the card, but must be visible to the purchaser prior to purchase. This example assumes a 13.76 percent local charge rate. 11California Civil Code Section 1749.5(d). Gift cards may not expire before five years after the date they were purchased. Q.7. This was passed in 2009 to limit abuse of consumers by credit card companies and banks. The California Civil Code is available at county law libraries and law school libraries. California laws governing gift cards and gift certificates cannot be waived. Compare two recent cases of fitness companies who sold class packs to customers and faced lawsuits over alleged violations of the CARD Act: SoulCycle, a nationwide operation of indoor spin cycling studios, and CorePower Yoga, a yoga studio chain. 1 in our ratings of the Best Cheap Cell Phone Plans of 2023, the Best Prepaid Cell Phone Plans of 2023, and the Best . Since California's Legislative Counsel has concluded that the issuer (not the holder) may choose between these two methods,24 the likely answer is that the issuer may set its own policy. This exception was modified effective January 1, 2005, to clarify that a redemption date was not another name for an expiration date. The judge in the CorePower Yoga case, in rejecting plaintiffs claims, noted the absurd result that would follow from plaintiffs proposed interpretation of the law, as a violation of the CARD Act could result from any time limits on admission passes, codes, vouches, or tickets, including time restrictions on monthly passes to a parking garage, admission passes to theme parks, physical training packages, music lessons, and bus passes good for a certain number of rides. The court found, It would be absurd to determine that these prepaid, time-limited goods and services are unlawful because they contain expiration dates or temporal restrictions.. The plaintiff in the case successfully argued that the certificates were issued in a specified amountthat is, the series certificates (the Plaintiffs term of art for the prepaid spin cards) could be used to purchase classes up to the amount specified on the certificate. We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly. Simple steps to get started 1. Further, you should charge your customer any applicable local charges at the rate listed for the City of Sacramento. If the rate under the ordinance is a specified percentage rate or one dollar ($1) or more per month per access line, including any adjustments for inflation, the new rate will be either the specified percentage or the rate obtained by dividing the dollar amount by 50, rounded to the nearest one-tenth of 1 percent. Where you submit your claim depends on the reason for the refund and where the purchase was made. In this respect, California law is more consumer friendly than the federal law. The 911 and 988 surcharge apply to all telecommunication access lines (wirelines, postpaid wireless lines, and VoIP lines) subscribed in California that allow the user access to the 911 communications system and 988 suicide and crisis lifeline. It is a "prepaid contract" when any part of the contract occurs in the future. Refunding taxes when ordered to under the local ordinance. Prepaid Funeral Plan Costs & Expenses. The 911 and 988 surcharges do not apply to a telephone company's own access lines when the telephone company is not subject to charges for access lines that are billed by a service supplier. California Business and Professions Code Section 17538.9 permits certain fees and practices with respect to prepaid calling cards. Law Advice; Insurance Advice; Retirement Planning Advice for Women; 10 Tips for Filing a Catastrophic Injury Laws It requires a seller in bankruptcy to honor gift certificates issued before the date of the bankruptcy filing.25 No court has ruled on the effectiveness of this law. Can a gift certificate or gift card contain an expiration date? Ask about the seller's redemption policy. 6California Civil Code Section 1749.45(a). The invoice, receipt, or other similar document must show the amount of the 911 surcharge ($0.80), the amount of the 988 sSurcharge ($0.08), and the amount of the local charges ($6.88) at the time of the retail sale of prepaid MTS. For information on filing a claim, and other basic information on bankruptcy, see "Consumer Tips on Retail Store Bankruptcies," under the "Publications" tab at www.dca.ca.gov, and then go to the "Consumer Publications" section, for the list of consumer publications. First, not covered by the law were gift cards that could be redeemed for a specific good or service, or experience, such as a spa treatment, hotel stay, or airline flight. By comparison, the law does cover gift certificates that can be applied toward the purchase of a specific good or service, such as a certificate or card redeemable for a spa treatment up to $50..