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Sales Tax

Definition - What does Sales Tax mean?

Sales taxes are taxes imposed by governments such as state or city governments on the sale of certain items.

In the context of the law, people who buy certain goods are legally obligated to pay sales taxes. These taxes are often an important source of revenue for the governments who impose them.

Justipedia explains Sales Tax

Some items are taxed higher for sales tax purpose. Cigarettes are one item that is commonly targeted by states for sales taxes. For example, in the state of New York, every person who purchases a carton of cigarettes must pay a $4.35 sales tax on the carton.

Sales taxes are generally paid by the purchaser of the item and collected by the vendor. There are a wide variety of items that can have a sales tax put on them.

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