The Corner Cafe & Bakery

Review: I bought for $10 each [redacted] local vouchers but each gives ?$20 worth of food. I went to eat there and a very rude waitress overcharged me on tax and on wrong amount. I tried to tell ner nys tax proceure [redacted] states on prepaid voucher tax is on what you actually pay. she has rto call the [redacted] ten times but does not understand the simple calculation. today I went to use second voucher and a different wiater comes to serve me. she appears and tells me I have to pay tax on $20 not $10- she refuses service and tells me to wait for [redacted]. I waited a long time and she is rude nd I am tired and worked all day for this. Thye [redacted] an [redacted] comes to speak to me and shows me a an email from [redacted] which uis erroneous - and I tried to show him the real procedure from nys tax- he refused to even look at it- and refuses services for which I prepaid and [redacted] tells me to leave- the witress and the [redacted] are very ignorant and illiterate- dept pf taxation should be notiifiedDesired Settlement: refund of $50 plus $75 for aggravationand wasted travel time I had to travel from downtown to get this awful treatment

Consumer

Response:

ok refund for th $50 $10 for each voucher- times 5 I purchased-

Consumer

Response:

At this time, I have not been contacted by corner cafe and bakery regarding complaint ID [redacted].

Sincerely,

Business

Response:

[redacted] is correct; she came to our restaurant with an [redacted] Local voucher purchased for $10, which entitled her to $20 in food. She is also correct that how tax is collected on vouchers is explained in Technical Memorandum TSB-M-11(16)S from the State Department of Taxation and Finance. However, her interpretation of this document is erroneous, as is everything else in her account of her visit.

The headnote of the memorandum says: "The sale of certain vouchers by Web-based companies on behalf of businesses is not subject to sales or use tax at the time that the voucher is sold. However, sales or use tax is due at the time the voucher is redeemed with a vendor if the voucher is redeemed for taxable products or services." (emphasis mine)

The only type of voucher for which a business should not collect tax at the time of redemption is one for a specific product or service, not a certain face value. This voucher is for $20 of our products, so that exception does not apply.

The memorandum says "a stated face value voucher is a voucher with a specifically stated value, and when redeemed, the value of the voucher is applied towards the price of the products or services purchased by the customer." Our voucher meets these criteria.

As to how such a voucher is to be treated, the memorandum says, "A stated face value voucher is generally treated in the same manner as a gift card. That is, it is treated as cash up to the stated face value of the voucher. Therefore, when this type of voucher is redeemed for taxable products or services sales tax is computed on the selling price of the items before the value of the voucher is applied against the purchase price."

Our employee did precisely what the state tax department requires. She charged tax on the full amount of the transaction before deducting the value of the voucher. She was perfectly capable of what [redacted] calls "the simple calculation" and performed it correctly. [redacted], however, does not understand the memorandum, and interprets it as meaning exactly the opposite of what it clearly states.

At no time was our employee less than professional and polite in her interaction with [redacted]; she merely stated the facts as she (correctly) understood them and followed both company policy and New York State law. Apparently, [redacted] considered this rude. Most people would think the server was merely doing her job, and in an exemplary fashion.

[redacted] knows its business. That is why we relied on the email they sent explaining how to charge sales tax when a voucher is redeemed. There was no need to look at [redacted]' copy of Technical Memorandum TSB-M-11(16)S—we already knew and understood what it said. It's unfortunate that [redacted] did not.

It is our understanding that [redacted] Local has refunded [redacted] for all five vouchers she purchased through them. We sincerely hope that she is satisfied with that outcome and that this will put an end to the matter.