Sales Taxes
When are sales taxes applied?
When consumers buy taxable good or services
Which level of government primarily receives sales tax revenue?
State and local governments
When is sales tax paid during a purchase?
Automatically at checkout
Which type of purchase is most likely to be exempt from sales tax?
Groceries or medicine
Which state has the highest statewide base sales tax rate in the U.S?
California
Who is responsible for collecting sales tax at the point of purchase?
The retailer
Which public service commonly receives funding from sales tax revenue?
Public Schools
How is sales tax added when shopping online?
It is automatically added during checkout
Why can the same item cost more in one town than another?
Local sales tax rates vary by city or country
What percent can local district taxes push above in some cities?
10%
What state has no federal sales tax?
The United States
Which area of infrastructure is supported by the sales tax revenue?
Roads and transit systems
What part of the purchase process includes sales tax?
The checkout process
Why might a state or city raise its sale tax rate?
To increase funding for public needs
What makes Louisiana and Tennessee different from California sales taxes?
Local governments have more room to add extra taxes
How many US states impose a statewide sales tax?
45 states and Washington DC
Which public safety service is funded in part by sales tax revenue?
Police and fire departments
Who does NOT handle the paperwork and sends the money to the government?
The customer
Why do many online purchases now include sales tax?
States require online sellers to collect tax if they sell enough in that state
What are the 5 states with no sales taxes?
Delaware, Montana, New Hampshire, Oregon and Alaska
Who ultimately pays the cost of sales cost?
The end consumer
Which of the following may receive sales tax funding depending on the state?
Public health and social services
Who imposes the sales tax?
The government
How is a sales tax calculated?
As a percentage of the purchase price of the item.
Which state has a rate of 6.5% sales tax?
Arkansas