Sales taxes are added to the cost
of a product or service and are generally paid by the customer.
Most states and local taxing authorities impose a general sales
tax on retail sales and certain services. Business owners are responsible
for collecting these taxes and remitting them to the appropriate
taxing authority.
Goods purchased to resell from manufacturers or wholesalers are
exempt from sales taxes because the tax will be paid by the retail
customer. This is commonly referred to as a resale exemption.
Every business that sells taxable goods or services must obtain
a sales tax license from the state in which it does business prior
to engaging in business.
Use taxes are generally levied on the sales price or rental charge
for tangible personal property on which no sales tax has been paid.
This most commonly occurs when the item is purchased from a business
in another state and shipped to the user’s state (most states
do not impose sales taxes on products that are shipped to another
state).
For more information on the specific tax obligations for your state,
contact the tax
oversight agency. |