Sales tax

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Sales tax

A percentage tax on the selling price of goods and services.

Sales Tax

A tax imposed on the sale of retail goods and services. That is, the government collects a certain percentage of the sale price on transactions where goods and services are traded at the retail level. While the retailers are responsible for paying the sales tax, most of the time they simply pass on the cost to customers. For example, if an item costs $10 and there is a 5% sales tax, the retailer will charge the customer $10.50. Proponents of sales taxes argue that they reward those who spend less and, therefore, do not punish those who earn more. Critics argue that sales taxes harm the poor disproportionately and can drive business to other jurisdictions. See also: VAT, Regressive tax.

Sales tax.

A sales tax is a tax imposed by state and local governments on transactions that occur within their jurisdictions.

The taxing authority determines which transactions are subject to tax and the flat rate at which the tax is calculated. Some countries, though not the United States, impose a national sales tax often called a value added tax (VAT).

sales tax


turnover tax

a form of INDIRECT TAX that is incorporated into the selling price of a product and is borne by the consumer. Sales taxes include VALUE-ADDED TAX and EXCISE DUTY.
References in periodicals archive ?
Some of these reforms might involve improvements to the current retail sales tax.
The FairTax is a progressive, revenue-neutral consumption tax in the form of a national retail sales tax on all services and the final sale of all new goods.
They are (1) a consumed income tax, (2) a value added tax (VAT), which could take the form of a subtraction method VAT, a credit invoice VAT, or a retail sales tax (RST), which is analytically equivalent to a VAT, (3) a two-tier consumption tax based on a VAT, and (4) a yield exemption tax.
6 million in new retail sales tax, property tax and business license taxes annually.
B2C and B2B sales thus give rise to problems for both revenue and efficiency under the retail sales tax (RST).
Table 1 presents local option retail sales tax collections for Shelby County, including all municipalities and unincorporated areas, for January-September 2000 and 2001.
The Commission laid out the universe of ideas, ranging from a retail sales tax to a flat tax to a cash flow tax, but left the weighing of the benefits and burdens of the proposed alternatives to the reader.
The value-added tax and the national retail sales tax, which are direct taxes on consumption, would have much more of an impact on our business than an indirect consumption tax like the flat tax.
Critics of a federal retail sales tax who point to the danger of politicians simply adopting the retail sales tax on top of reduced rates for the present system have a very legitimate concern.
Moreover, data for twenty-three OECD countries[4] indicate that neither consumption taxes in general, nor a VAT or retail sales tax in particular, have any impact on the rate of saving.
The Center looked at the level of per capita retail sales tax collections relative to per capita income.