A sales tax is a point-of-purchase levy that is paid by the end purchaser of certain goods and services within the borders of a taxing authority. Generally, it is triggered by the consummation of a retail sale of tangible personal property (something that may be seen, weighed, measured, felt, or touched), but it may also cover other transactions whose designations can vary widely from state to state.
The amount of tax that is owed is determined by applying the applicable tax rate to the total sales price. While the purchaser bears the legal burden of paying a sales tax, it is the responsibility of the seller to remit it to the state and/or appropriate municipality. Sales taxes are required on all cash transactions, as well as on credit sales, installment sales, lay-away sales, and sales involving trade-ins or exchanges of property, unless specifically exempted.
At Wasvary Tax Services we have multiple years of experience with helping our clients with Sales Tax situations. Our expertise can help guide you in what can often seem like a totally overwhelming, perhaps even impossible, process.