Are you a New Jersey merchant who sells and/or accepts gift cards? An amendment to the New Jersey Gift Card Redemption law is set to take effect on September 1, 2012. The amendment will allow gift card holders to request a cash redemption on gift cards with balances below $5 and increases the period a gift card must be inactive to be considered “abandoned” to five years under state tax law. Previously, a gift card had to be inactive for only two years to be considered abandoned.
The amendment, which was signed into law this past May by Gov. Chris Christie, is intended to address several shortcomings in the unpopular 2010 law, which was set to take effect in November of 2010 but was challenged in court.