Sales tax

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Sales tax

A percentage tax on the selling price of goods and services.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Sales taxes might not be charged on purchases your company makes for a variety of reasons, including a lack of nexus on the part of your supplier, an erroneous application of an exemption certificate, or even poor sales tax compliance by a supplier.
All but the very smallest retailers would have to calculate and remit sales taxes to nearly 10,000 separate jurisdictions, each with its own tax rate and list of exemptions.
According to an estimate from the National Conference of State Legislators, states missed out on $11.4 billion in sales taxes in 2012.
With the new deal, the company will start collecting sales taxes on July 1.
The owners of a small take-out deli were exempt from sales taxes because there is no sales tax on food that can't be consumed on the premises.
There are states, however, that don't require such an adjustment for sales taxes.
Additionally, it provides special expensing and depreciation schedules for small businesses, implements new S corporation provisions, allows individuals a deduction for state sales taxes paid, reforms international tax provisions and provides tax breaks for farmers, restaurant owners and manufacturers.
Furthermore, Tennessee's relatively high overall sales taxes and the emergence of mail-order shopping (and now Internet sales) may have increased cross-border shopping and caused further erosion in the sales tax base.
Traditionally, when sales taxes are too high, consumers have had the option, though inconvenient, of shoping in another state.
* ISPs: Succeeded in convincing Congress to bar states from imposing sales taxes on Internet access or creating multiple or discriminatory taxes.
If this procedure is not followed, the purchaser can be held liable for the sales taxes due on the transfer of the assets and any previous sales tax liabilities of past operations up to the extent of the purchase price.