sales tax

noun

Definition of sales tax 

: a tax levied on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the seller

Examples of sales tax in a Sentence

Recent Examples on the Web

No sales tax on groceries and levying an estate tax. Jon Talton, The Seattle Times, "Washington’s paradox: Progressive politics but regressive tax system," 23 Oct. 2018 The second is also a 1-cent sales tax, raising the same amount annually, but the unrestricted funds could be used for any purpose. Bradley Zint, latimes.com, "Laguna council pushes initiative to place utility lines underground to July 17 so mayor can vote," 10 July 2018 The new law allowed developers who built retail within 15 miles of a border to recoup some of the sales tax, making projects more attractive. Washington Post, "2 cities share name, but 1 is in big trouble," 6 July 2018 Florida has a 6% sales tax, not 7%, and Florida, Tennessee and Texas each allow local governments to add a local sales tax. Paul Egan, Detroit Free Press, "Does anyone running for governor have a new idea? We asked the candidates," 6 July 2018 Other local governments have a cannabis sales tax, too. Laurel Andrews, Anchorage Daily News, "Marijuana tax increase fails at Anchorage assembly," 29 June 2018 There have only been two government shutdowns in New Jersey: one in 2006 amid a dispute over the sales tax, and again last year, when Christie clashed with lawmakers over a health insurer’s reserves. Andrew Seidman, Philly.com, "Gov. Murphy, N.J. lawmakers at budget impasse," 21 June 2018 Sales are subject to an excise tax and regular sales taxes, with excise revenue split 75-25 between the provincial and federal governments for the first two years. Fortune, "Canada Is Now Just One Small Step From Legalizing Recreational Marijuana Nationwide," 20 June 2018 Sources of the city’s income include sales tax revenues (38 percent), property tax revenues (26 percent), all other taxes (14 percent), charges for services (11 percent) and 11 percent from other sources. J. Harry Jones, sandiegouniontribune.com, "Escondido approves budget; Diaz silently votes no," 14 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'sales tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of sales tax

1921, in the meaning defined above

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Dictionary Entries near sales tax

salesroom

sales slip

sales talk

sales tax

saleswoman

salet

saleyard

Statistics for sales tax

Last Updated

14 Nov 2018

Look-up Popularity

Time Traveler for sales tax

The first known use of sales tax was in 1921

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More Definitions for sales tax

sales tax

noun

Financial Definition of sales tax

What It Is

Sales tax is a consumption tax levied on goods and services purchased at the retail level, paid by the consumer and submitted by the retailer to the governing tax authority.

How It Works

In the United States, the sales tax is imposed on retail items. It is paid by the consumer to the retailer, usually as a percentage of the retail cost, who submits the payment to the state.

Sales tax rate and application varies dependant on the state. Sales tax can be applied by counties, cities and regions in addition to the state sales tax.

[InvestingAnswers Feature: The Most Important Tax Changes to Know Before Filing Your Tax Return]

Why It Matters

The imposition of this tax affects the consumer directly on each purchase for nonexempt goods and services. Some consumers may find it advantageous to "cross the border" to pay less taxes than in their home state for larger purchases.

The Organization for Economic Cooperation and Development (OECD) has found that sales taxes are one of the least harmful types of taxes for the economy; they minimally hinder growth and investment.

Many consider sales tax to be regressive, as it is a larger burden and percentage of income for low-income earners.

The only federal sales tax was imposed in 2010 via the health care reform law which taxes a 10% federal sales tax on indoor tanning services.

[InvestingAnswers Feature: How to Avoid an IRS Audit]

Source: Investing Answers

sales tax

noun

English Language Learners Definition of sales tax

: a tax that is added to the price of goods and services

sales tax

noun

Kids Definition of sales tax

: a tax paid by the buyer on goods bought

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sales tax

noun

Legal Definition of sales tax 

: a tax levied on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the seller

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Britannica.com: Encyclopedia article about sales tax

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