Recent Examples of sales tax from the Web
There will be no broad sales tax increase as part of the deal, though that tax will be levied on e-cigarettes and lodgings like Airbnb.
The measure, which Walker signed into law on the day income taxes were due in April, also includes the sales tax holiday that will run from Aug. 1 to 5.
That could change after the Supreme Court ruled last week that states and local governments could require the collection of sales tax on internet purchases, whether the retailers have physical presences in the area.
Those buying fireworks will pay an extra 5 percent excise tax at the register, in addition to regular state and local sales taxes.
The state program pulls money from sales tax on residential telephone service and distributes money from a $5 million fund to WITA members who qualify.
Those who say Michigan corporations are not paying their fair share of taxes are not seeing the entire picture, said Anderson, who noted corporations pay significant property taxes and sales taxes on top of corporate income taxes.
For small businesses, the ruling could add the cumbersome task of keeping track of sales taxes across 50 states and thousands of jurisdictions with varying tax codes.
The Supreme Court just paved the way for broader collection of online sales taxes.
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.
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.
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.
SALES TAX Defined for English Language Learners
: a tax that is added to the price of goods and services
SALES TAX Defined for Kids
Seen and Heard
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