The topic of sales and use tax homework answers is fairly intriguing and we find it easier to discuss as they pertain to some real-life incidences. In our blog, we describe and elaborate on the definition, types of transaction and the rules abiding the tax payers when it comes to the said law. Our blog is focused to enriching you with all that you need to know about this particular tax.
Our blog sales and use tax homework answers the basic notions associated with tax collection and payment. Common public in general pay taxes in all the purchases they make, however, consciously unaware of the procedure. This stems from the fact that lot of people consider taxation as a complicated process only to be dealt by government authorities, businessmen and CA offices. We try to throw some light on the procedure and applicability thus making it easier for all.
What is a sales tax?
Sales tax is the price paid in addition to the purchase price and collected by the vendor against sale of a good. Sales tax may vary from place to place, government to government. Â The vendor in turn, remits the amount of tax to the government. Certain purchase for example, vehicles and trailers, tax is paid by the buyer directly to the government.
Definition of use tax
Unlike the sale tax, use tax is paid to the government directly by the buyer of goods. For example, you buy furniture A from Colorado for use in your state of residence Massachusetts. You do not pay Massachusetts sales tax for purchase in Colorado. However, you pay 6.25% use tax in Massachusetts as furniture A will be used in the latter state. Use tax is applied as the purchase was not made subject to sales tax in Colorado.
Inclusion of goods under use tax
Cable service and internet service does not come under the purview of sales tax and exempt from such taxes.
Sales and use tax homework answers pertaining to a particular state define sales and use tax vendor as one who
Other state vendors who are listed outside the jurisdiction of a said state, however, performs similar activities as that of the state vendors defines above will fall under the purview of sales and use tax law.
How does a vendor become eligible to collect sales and use tax?
The ops topic of sales and use tax homework answers goes on to reveal how a vendor can apply for registration in a particular state. A registered vendor is eligible for collecting and subsequently remitting sales and use tax to the government for various public welfare developments.
The law of sales and use tax, however, is lenient when it comes to one time purchase of any item by an individual or business from outside the state jurisdiction. For example, if you purchase a one-time item outside the state jurisdiction as an individual, you do not have to shell out sales tax. Again, as a business enterprise, you are not liable to collect sales and use tax if you indulge in one time buying and selling of an item outside the state jurisdiction.
Sales and use tax homework answers states how certain items is not included in the tax regime.
The tax-exempt items are as below
Other apparels and specific items that do not fall under the sales and use tax regime is given as below
The list only grows long depending on the state in question. Sales and use tax homework answers reveal that taxable and tax-exempt items are state specific.