1. What is Sales tax?
Sales tax applies to the sale, rental, lease, or license to use certain property or goods (tangible personal property) and certain services in a state, unless the
transaction is specifically exempt. The sales tax is added to the price of the taxable goods or services and collected from the purchaser at the time of sale.
For example, sales tax is added as a separate item to the price of:
- Retail goods (new and used).
- Prepared foods and meals.
- Admission to games, sports events,performances, and amusement parks.
- Rent or lease of commercial property.
- Transient (six months or less) rental of living or sleeping accommodations such as hotel and motel rooms, condominium units, campground sites, and trailer or RV park accommodations.
- Services such as detective or burglary services, nonresidential cleaning, and nonresidential pest control.
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