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

or

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 ?
Zimmerman, of the Municipal League, said the total revenue cities receive from the sales tax has been flat the first few months of the year compared with the same period a year ago.
Gary Nachman, an analyst with Leerink Swann in New York, said the sales tax is a nonissue for Allergan and the consumer.
Has anyone had any state sales tax issues come up when doing so (i.
In exchange, industry would be expected to take seriously its duty to collect and remit sales tax on remote transactions.
Advocates of the sales tax rightly insist that it be accompanied by complete, irreversible abolition of the income tax, which would require repeal of the 16th Amendment.
Under this REBNY agreement, sales tax is due for the identified profit on electricity.
RTD has a low farebox recovery rate, relying instead on excess sales tax revenue to cover operating costs.
The entire transaction, including the electronically delivered software, is subject to sales tax.
Sales tax revenue helps pay for additional law enforcement and parks and recreation, Hernandez said.
On October 3, 1996, Tax Executives Institute filed a series of letters with Canadian federal and provincial tax officials concerning the harmonization of the federal Goods and Services Tax with provincial sales tax regimes.
Ways and Means Committee Chairman Bill Archer would instead scrap the Internal Revenue Code entirely and replace it with a flat-rate national sales tax.
The state sales tax is a 4 percent tax on receipts from every sale, other than sales for resales of gas, electricity, refrigeration and steam.