
Understanding Sales Tax Blog Posts


Teaching Kids About Sales Tax
For kids, it can be very exciting to save up allowance or birthday money and then take it to the store to buy a toy they’ve been eyeing for weeks. But it can also be confusing when they get to the register and find that the total cost is more than the price that was listed on the shelf. As adults, of course, we know that this difference reflects the sales tax added onto the item, and we’ve gotten so used to it simply being a fact of life that it can be hard to explain exactly what it is… Read More
What Is Sales Tax Revenue Spent On?
Except for in five states, customers in the US will pay sales tax on many goods and services they purchase. Even in those states without a statewide sales tax, certain items are still taxed, and local governments may be allowed to impose their own sales taxes if they wish. Of course, there’s a reason that sales taxes are so widespread, and that’s because they raise a lot of revenue for the states. Many states, although not all, have income taxes as well, and so sales tax isn’t their only source of revenue. However, economic downturns can cause revenue from income… Read More
Who Actually Imposes Sales Tax?
If you operate a business selling taxable goods or services, you almost certainly need to collect sales tax from your customers. However, sales tax rates and regulations vary a great deal from state to state, and this can become even more complicated if you sell in multiple states or ship items from one state to customers in another. When trying to determine what to charge and when, the first thing you need to understand is who imposes the tax in the first place. States In general, the bulk of the sales tax rate in any given location is imposed by… Read More