Used Video Game Trade-In Credit Not Taxable in Louisiana

Monday, March 23rd, 2015

 
 
A video game controller.
Share
Link
Louisiana
Entertainment

The Louisiana Court of Appeals ruled that store credit for used video games constituted a trade-in value. The credit was not part of the sales price for later purchases.

A video game retailer purchased used video games from customers. The retailer's customers had the option of using the amount received from the retailer as store credit. If the customer chose the store credit option, the retailer gave the customer a card that could be used to apply the credit to future purchases.

The court determined that when the store credit was applied to later purchases, the credit was not part of the taxable "sales price" of the purchases. The definition of "sales price" excludes the value of any article traded in. Because the credit on the card could only be applied to purchases at the retailer's stores, the credit was considered a "trade-in," and the amount of credit used on any later purchase was not subject to tax.

http://www.la-fcca.org/opiniongrid/opinionpdf/2014%20CA%200878%20Decision%20Appeal.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...

Sales by Charitable Organizations Generally Exempt in...

Friday, May 11th, 2018 -The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a non...

Credit Card Convenience Fees Taxable in New York

Wednesday, May 9th, 2018 -The New York Department of Taxation and Finance recently ruled that convenience fees for credit card purchases...

Farming Exemption Does Not Apply to Residential Gardening...

Monday, May 7th, 2018 -The Arkansas Department of Finance and Administration ruled that a utility vehicle used for residential garden...