Understanding Sales Tax Blog Posts

Are Android and iPhone Apps Subject to Sales Tax?

July 10, 2017

As technology evolves, there emerge more and more situations that our current sales tax laws were just not designed to deal with. Selling remotely over the internet is one of these, and when that selling involves digital products like apps, the issue of how and when to apply sales tax becomes even more complicated. That’s especially true from a seller’s point of view, as the taxability of an app depends on the state it’s purchased in and whether or not the seller has a nexus in that state. Distinctions in Digital Products When it comes to sales tax and the… Read More

How Do Amazon’s Sales Tax Changes Affect Me?

June 19, 2017

The battle between states and online retailers about when they are responsible for collecting and remitting sales tax to individual states took a new turn recently, as Amazon added Hawaii, Idaho, Maine and New Mexico to the list of states it collects sales tax in. This brings its total to 45 states plus the District of Columbia, and the remaining five states don’t have a general statewide sales tax. Of course, while Amazon is among the largest online retailers, it’s not the only ecommerce platform, and there are a lot of different ways that sellers can reach customers across the… Read More

A History of Taxes in America

May 16, 2017

Living anywhere in the United States means paying all sorts of taxes, from income tax to sales tax, and indeed, the struggle for US independence began largely because of a dispute over taxes levied on colonists by the British government. Taxes play an important role in the functioning of our society, of course, as they allow for the construction and maintenance of facilities and institutions no individual citizens could pay for on their own but which everyone needs. Throughout the history of this country, taxes have come in different forms and have been used in different ways, and they’ve often… Read More

Teaching Kids About Sales Tax

May 8, 2017

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?

April 10, 2017

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