Is It OK to Seize Unused Gift Cards After Two Years? (New Jersey Plans to)

Most retailers these days don't have expiration dates on their gift cards, a blessing to consumers who are slow to spend their credit. But soon New Jersey residents won't have that luxury. A law passed in 2010 will go into effect this year and allow the state's Department of Treasury to take the money from gift cards, travelers' checks, and money orders that haven't been used up within two years of purchase. American Express has already pulled gift card sales from the state.

According to NJ.com, the state projected it could have seized $79 million in revenue in 2011 from the law, but they needed to collect buyer ZIP codes to enforce the law, and that lead to lawsuits and a suspension of ZIP code collection. Treasury spokesman Andy Pratt said, "We're working with industry groups to determine the best way to have merchants collect ZIP codes. We're not requiring it until we come up with a policy that is uniform and as least onerous as possible." Does this gift card idea sound like a good way to generate revenue -- or a just a slimy way for the government to take some cash?