sales tax

sales tax
A state or local-level tax on the retail sale of specified property or services. It is a percentage of the cost of such.
Generally, the purchaser pays the tax, but the seller collects it, as an agent for the government. Various taxing jurisdictions allow exemptions for purchases of specified items, including certain foods, services, and manufacturing equipment. If the purchaser and seller are in different states, a use tax usually applies
+ sales tax
Tax levied in most states on the sale of goods and based on their value. It may be a direct tax which is paid by the purchaser or a turnover tax paid by the seller on the gross sales of his business.
See also sales tax.

Black's law dictionary. . 1990.

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Look at other dictionaries:

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