TUESDAY, Dec. 26, 2006, 4:59 p.m. By Stacy Forster
Legislator eyes unused gift card value
Madison - Rep. Fred Kessler (D-Milwaukee) said today that the value of unused gift cards should go to the state treasury - not to the merchant - and that change will be part of a bill he'll introduce in the legislative session starting in January.
Kessler said millions of dollars a year go unused by gift card recipients, and retailers are allowed to book the unused values after the cards expire. He cited figures from Consumer Reports showing that 19% of all gift cards are not used because they are lost or expired.
Kessler called that a "windfall," which he said could be used to support schools, health care or roads. Under his bill, after a one-year expiration date on all cards, 80% of the value of unused cards would go to the state treasury. Merchants could keep 20% of the value of an unused card to pay for processing, Kessler said.
"I'd rather have people spend the money and use the gift card, but if they aren't, I'd rather the state get the money," Kessler said.
Two bills regarding gift cards failed to pass in the last legislative session; one would have eliminated fees or expiration dates on gift cards and the other would have required conspicuous posting of expiration and service charge policies.
The Miner Part 2 wrote:i don't mind it a bit. best buy got their money. give the rest to the schools, roads, etc.
The "schools" already get the corporate tax rate of the companies earnings!
But 40% isn't enough for this jerk. He needs 80%, and I guarantee you he's not making the remaining 20% tax-free. He's getting ~90% once it's all done. And what is his justification? That companies are making money off of a product? I think someone in the government's just mad that they don't have a "scam" this good.
The bumper sticker really does have it right:
Don't steal. The government hates competition.
If the government was really on the consumer's side, they'd make it so that you could get a refund of the leftover funds.
knapplc wrote:Why in the world would he think the State is entitled to that money?
That is exactly what I was thinking. How the state has any right to claim that money is beyond me.
mr. policeman's magic wand generally has your answer
Still, those gift cards are a sale. Does Wisconsin plan on plan on collecting all the bad ties given as gifts that no one uses? Seems to me that most people would view this as an "unreasonable seizure" which is in violation of the 4th amendment.
knapplc wrote:Why in the world would he think the State is entitled to that money?
That is exactly what I was thinking. How the state has any right to claim that money is beyond me.
mr. policeman's magic wand generally has your answer
Still, those gift cards are a sale. Does Wisconsin plan on plan on collecting all the bad ties given as gifts that no one uses? Seems to me that most people would view this as an "unreasonable seizure" which is in violation of the 4th amendment.
The bill would have to be written as a tax. My statement was just meant to communicate that the state's claim on the assets is supported by their ability to use force to execute laws they pass, principle be damned.
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by RugbyD » Thu Dec 28, 2006 12:28 pm 
