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

In 2016, Atlanta voters approved a $2.5 bilion MARTA sales tax increase for transit expansion in the city and the MARTA board is preparing the project list. J. Scott Trubey, ajc, "Atlanta Beltline group pushes MARTA for funding of full rail loop," 12 July 2018 Payroll and sales tax collections were up, signaling a growing economy. Gregory S. Schneider, Washington Post, "Virginia posts revenue surplus, but is economic growth or tax strategy?," 12 July 2018 Will County’s largest school district — Plainfield District 202 — has not yet considered the sales tax resolution, district spokesman Tom Hernandez said. Susan Demar Lafferty, Daily Southtown, "Lincoln-Way, Manhattan support push for school sales tax referendum," 29 June 2018 Funding comes primarily from Medicaid and a 1/4 cent sales tax voters passed last year to help the homeless. Stacey Burling, Philly.com, "Shelters, hospitals 'playing ping pong' with Philadelphia's homeless, sick population," 28 June 2018 Sellers who use eBay and Etsy, which provide platforms for smaller sellers, also haven't been collecting sales tax nationwide. Jessica Gresko, courant.com, "High Court: Online shoppers can be forced to pay sales tax," 21 June 2018 And South Dakota is part of a 23-state agreement to streamline sales tax definitions and compliance. Richard Rubin, WSJ, "State Sales-Tax Officials Rev Their Engines," 21 June 2018 Just a few years ago, the city manager named Amazon the number one contributor to the city’s sales tax base. Alexandra Samuel, The Verge, "Welcome to Blaine, the town Amazon Prime built," 20 June 2018 Businesses who defend the current rule say collecting sales tax nationwide is a complex and costly process, especially for the smaller sellers. Kaitlyn Schallhorn, Fox News, "Supreme Court to tackle immigration, voting rights, unions: A look at major cases on justices' agenda," 18 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

19 Sep 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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