sales tax

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sales tax,

levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. It may be levied each time a commodity changes hands—as from manufacturer to wholesaler, from wholesaler to retailer—and is then called a transactions, or turnover, tax. Many oppose the tax as being regressive, i.e., as placing a disproportionately heavy burden on the poor; but it yields a large revenue, and governments find it easy to collect. As of 1999, 45 states, the District of Columbia, a number of cities and counties, and many foreign countries levied sales taxes. A modern variant of the sales tax is the value-added taxvalue-added tax
(VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level.
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References in periodicals archive ?
Little Rock Mayor Mark Stodola said the failure to collect internet sales tax is eviscerating the local tax base and hurting brick-and-mortar stores.
Cases: To Constitutionally require the dealer to collect and remit sales tax under the Commerce Clause, the U.
Bob Petersen, CPA, posted the following general summary regarding the sales tax aspects of software sales.
There doesn't appear to be any consensus on how sales tax would be applied online, and, importantly, not subjecting worldwideweb business to sales tax seems to fit the agenda of the "no new taxes" people in Congress.
of the North Carolina Department of Revenue and co-chair of the Streamlined Sales Tax Project, software will simplify the situation.
Under Model One, a certified service provider will perform all of the seller's sales tax administrative functions.
The commission also could propose to extend current sales tax concepts to Internet transactions.
In the long run, the biggest winner in the debate between the flat tax and the sales tax may turn out to be the current system.
chief of sales tax instructions and interpretations for the New York State Division of Taxation.
Virginia has issued significant guidance on the application of sales tax in the form of policy determinations.