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A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase . Federal Sales Taxes
Sales tax is governed at the state level and no national general sales tax exists. 45 states, the District of Columbia, the territories of Puerto Rico, and Guam impose general sales taxes that apply to the sale or lease of most goods and some services, and states also may levy selective sales taxes on the sale or lease of particular goods or ...
A sales tax typically applies to the sale of goods, and sometimes includes the sales of services. The tax is applied at the point of sale. The tax amount is usually ad valorem, that is, it is calculated by applying a percentage rate to the price of a sale. When a tax on goods or services is paid to a governing body directly by a consumer, it is ...
Since Ohio’s state sales tax rate is 5.75%, the local sales tax rate for Franklin County is 1.75%. Revenue generated by sales taxes often funds state and local programs such as education ...
In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST (in the past, in Quebec and in Prince Edward Island, PST was applied to the combined sum of sale price and GST). Of the provincial sales taxes, only the QST (and the HST) are value-added; the rest are cascading taxes.
Many cities, counties, transit authorities and special purpose districts impose an additional local sales or use tax. Sales and use tax is calculated as the purchase price times the appropriate tax rate. Tax rates vary widely by jurisdiction from less than 1% to over 10%. Sales tax is collected by the seller at the time of sale.
An indirect tax (such as a sales tax, per unit tax, value-added tax (VAT), excise tax, consumption tax, or tariff) is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of market price of the good or service purchased. Alternatively, if the entity who pays taxes to the tax ...
The tax can be included in the price (tax-inclusive) or added at the point of sale (tax-exclusive). Ideally, a sales tax is fair, has a high compliance rate, is difficult to avoid, is charged every time an item is sold retail, and is simple to calculate and simple to collect.