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

General admission tickets are $37.22 (including CT sales tax); VIP entry is $58.49. Leeanne Griffin, courant.com, "Here’s where you’ll find Connecticut’s fall beer festivals from now to mid-November," 30 Aug. 2019 Michigan is one of only a handful of states that apply their full sales tax to fuel sales. Kathleen Gray, Detroit Free Press, "Whitmer calls on Republican lawmakers to reveal their plan for fixing Michigan roads," 28 Aug. 2019 The Lake Elmo Regional Park Reserve Improvement Project is being paid for with proceeds from the county’s bond sale, state sales tax and Metropolitan Council bonds. Mary Divine, Twin Cities, "Trail upgrade, RV campground update on deck at Lake Elmo Regional Park Reserve," 26 Aug. 2019 But until 2016, when Alameda County voters approved a new half-cent sales tax for transportation improvements, including $120 million for the station, there wasn’t enough funding to build it. Erin Baldassari, The Mercury News, "BART’s newest East Bay station cleared for development," 23 Aug. 2019 The Infrastructure Oversight Board was created as a result of the passage of Measure P, a three-quarter-cent sales tax approved by Burbank voters in November. Anthony Clark Carpio, Burbank Leader, "Burbank Infrastructure Oversight Board meets for first time," 23 Aug. 2019 In addition to the insurance requirement, Liccardo proposed a gun and ammunition sales tax to fund gun safety classes, violence prevention programs, and additional victim assistance services for survivors of gun violence. Sarah Moon, CNN, "A California mayor wants to require all gun owners to have liability insurance," 12 Aug. 2019 Wilson had to save an expiring penny sales tax of 1 percent or face the loss of almost $40 million. Lily Jackson | Ljackson@al.com, al, "Baldwin County Schools recognized nationally for construction funding plan," 30 July 2019 As families look to spend potentially hundreds of dollars on back-to-school shopping, certain clothing, school supplies and technology won’t have a sales tax — which is 6 to 8 percent depending on the county. Austin Fuller, orlandosentinel.com, "Tax-free holiday starts Friday. On no-tax list: School supplies, computers and ... lingerie?," 29 July 2019

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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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