A sales tax is a tax paid to a governing body by a seller for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase.
Laws may allow sellers to itemized the tax separately from the price of the goods or services, or require it to be included in the price (tax-inclusive). The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale.
When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax.
Often laws provide for the exemption of certain goods or services from sales and use tax.
Read more about Sales Tax: Types, Effects, Sales Tax Avoidance
Famous quotes containing the words sales and/or tax:
“There are no galley-slaves in the royal vessel of divine loveevery man works his oar voluntarily!”
—St. Francis De Sales (15671622)
“Parents are used to being made to feel guilty about...their contribution to the population problem, the school tax burden, and declining test scores. They expect to be blamed by teachers and psychologists, if not by police. And they will be blamed by the children themselves. It is hardy a wonder, then, that they withdraw into what used to be called permissiveness but is really neglect.”
—C. John Sommerville (20th century)