###### Asked in Taxes and Tax PreparationSales Tax

Taxes and Tax Preparation

Sales Tax

# If the price of a 21 pair of jeans is reduced by one-third how much tax must be paid on the jeans in a state that has 3 sales tax?

## Answer

###### Wiki User

###### May 31, 2007 5:14PM

If the item is taxable (and clothing in many places isn't), the discount is normally handled like this: If it provided by the retailer...the one your buying it from..as in $21 jeans on sale for $15 - the tax is on the sale amount of $15. If it is actually provided by the manufacturer... as in $21 jeans with manufacturer rebate now $15 - the tax is on the entire $21. (The manufacturer is paying the retailer the additional $6 for you....but the sale is really a $21 sale. Just apply the tax rate to the correct sales price (agreeably there may be some rounding for a 1c or so).

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### Hiking boots that cost 150 a pair are reduced by 40 percent for a special weekend sale By what percent must the special sales price be increased to bring the price back to 150?

cost = 150
X = 100% = 1.00 = original percent
Y = 40% = 0.40 = percent reduced
Z = sale percent
Reduction formula based on the above variables X and Y:
X - Y = Z
Z = 0.6
This means the boots are on sale for 60% of their original
price, or 90 a pair. To bring 90 up to 150, simply use the
following formula based on these variables:
A = raised price
B = sale price
C = percent the sales price is raised by to reach the raised
price
A/B = C
150/90 = 1.67
Or, to increase the sales price of 90 to the raised price of
150, you would need to sell the boots for 167% of the sales price.
100% of the sales price is 90, so the increase is 67%.

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### When is the best time to purchase a computer laptop on sale?

The best time is to wait until the advertised sale actually
begins and see if the laptops have been reduced by what you
personally perceive to be a suitable amount. Often with big sales,
items are further reduced, however there is no guarantee that items
will still be in stock and available to purchase. When sales begin
you could compare the sales price with other PC retailers or sites
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