Understanding Tax Exemptions and Taxables
Sales tax definition
SALE
Sales tax is imposed at the state and local level in the US - there is no federal sales tax.
Sales tax is a consumption tax imposed on retail sales to end consumers. Sales made along the supply chain
(i.e. resales) to parties other than the end consumer (e.g., resales) are generally not taxable.
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Sales tax is generally imposed on all sales of tangible personal property, but usually only certain enumerated
services depending on the state. The sale of intangibles and real property are generally not taxable.
The economic burden of the sales tax is generally borne by the consumer, but the tax is collected and
remitted by the seller to the state.
Sellers may be required to remit tax to the state on a monthly, quarterly, or annual basis. If a seller does not
collect tax, the purchaser owes USE tax which is complementary to the sales tax.
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