Sales taxes are imposed only on taxable transfers of property or services. Tax due is computed as the sales tax rate times the taxable transaction value. Rates vary by state, and by locality within a state. Sales tax is a transaction tax but not all types of transfers are taxable. The tax may be imposed on sales to consumers and to businesses. All states exempt certain types of goods from sales and use tax. Those states that tax services tax only certain services. Some states tax certain types of property rentals. Most transfers of intangible property are not subject to sales tax. Definitions become critical. Contact us to determine sales tax by State.
Sales Tax Accountants Inc. All Rights Reserved 2011
Legal Disclaimer: This publication is designed to distribute general tax information as a free service to clients and friends of Sales Tax Accountants. The information contained herein is not for resale. Applicable laws and regulations may vary by state and your specific facts or circumstances. Due to the ever-changing nature of laws and regulations, there may be omissions, delays or inaccuracies in the information contained in this article. Therefore, the information herein is not to be considered tax advice nor a substitute for consulting with professionals who are familiar with your particular factual situation. No client, advisory, fiduciary or professional relationship is implied or established. Please contact Sales Tax Accountants consultant to discuss the impact of this information on your particular situation.