Digital TV Vouchers…to tax or not to tax

h/t Josh Barro at the Tax Foundation

I found this blog entry by Josh very interesting.

It seems as though Best Buy has sent some “refund” checks out to people here in Wisconsin (and a few other states) with an apology for charging them tax on their purchase of a digital TV in which they used the DTV voucher offered by the federal government.

Josh points out that a large company such as Best Buy could easily make such a mistake when confronted by over 7,400 tax levying authorities in the US but was their decision correct?

Was the voucher a “coupon” or merely a “gift card”?

I think that Josh is right and the State Department of Revenue is wrong…but if I were receiving the refund I’m not so sure that I would be complaining.

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