Taxing Taxing, Part 14

I wanted to buy a gift certificate for my in-laws at one of their favorite local restaurants.

Me: “I’d like to get a $100 gift certificate, please.”

Cashier: “Certainly. That’ll be $108.”

Me: “Wait, what? Why is a $100 gift certificate $108?”

Cashier: “Well, you also have to pay for the tax.”

Me: “Hmm, I’ve never had to pay tax on a gift certificate before. Does that mean that there won’t be tax charged when the recipients use the gift certificate?”

Cashier: “No, of course, they’ll have to pay tax.”

Me: “But that means that you are charging tax twice.”

I could not make her understand the problem, and when I called later to speak with the manager, he couldn’t understand the problem, either. I haven’t gone back since.

Related:
Taxing Taxing, Part 13
Taxing Taxing, Part 12
Taxing Taxing, Part 11
Taxing Taxing, Part 10
Taxing Taxing, Part 9