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Sales tax tokens were made in great quantities starting in 1935 in order to give change for sales taxes. Sales tax resulted in the final price of items having fractions of a cent. For example, purchase of a $1.25 item, taxed at 3%, would cost $1.2875, or $1.28 and 3/4c. What to do? Rounding up to $1.29 would result in a "unfair" profit to the seller of 1/4c, but rounding down would be unfair to the seller by reducing the profit by 3/4c. The solution was to provide tokens denominated in fractions of a cent, or "mills" (1 mill = 1/1000 of a dollar, or 1/10 of a cent). So in the above example, the customer would pay $1.29 and receive 2.5 mills in tax tokens as change. If the next purchase came to $3.4325, the customer could pay $3.43 plus the 2.5 mills in tax tokens. As you can imagine, people did not like having to carry a second set of coins, and to further complicate matters, different states issued different tax tokens. The use of tax tokens declined and was finally discontinued in 1961, and people basically decided not to worry about fractions of a cent.
Wiki User
∙ 13y ago
David S.
They were for when you bought something after adding sales tax the amount had a fraction they could make up the difference with the tokens
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Can you charge sales tax on labor in Oklahoma?
Do you charge sales tax on labor in Oklahoma
Live in Texas work in Oklahoma do you have to pay Oklahoma Income Tax?
yes
How do I check the status of my state tax?
“How do I check the status of my state tax?”
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The Austin tax refund check you received may be your IRS tax return. If you overpaid your taxes you may also be issued a check.
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What is the sales tax on used cars in Oklahoma
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The 5's are bronze and the 1's are white metal you can buy them for around 4 or 5 dollars so a dealer will pay around 1 or 2 dollars.
What is the budget of Oklahoma Tax Commission?
The budget of Oklahoma Tax Commission is 140,000,000 dollars.
Can you charge sales tax on labor in Oklahoma?
Do you charge sales tax on labor in Oklahoma
What are the Oklahoma sales tax rates?
See 'Sources and related links' below for Oklahoma sales tax rates.
Where do i mail my quarterly federal tax return for Oklahoma?
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Live in Texas work in Oklahoma do you have to pay Oklahoma Income Tax?
yes
How long to get a duplicate title in Oklahoma?
Download the form http://www.tax.ok.gov/mvforms/701-7.pdf Print it, fill it out, have it notarized, and submit it in person at a tag agency with a check for $11 or by mail to a tag agency with a check for $12 made out to "Oklahoma Tax Commission."
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no
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sales excise tax , title, tag, for 2012 Fiat 500 in Oklahoma
How can one obtain tax forms from the Oklahoma Tax Commission?
If someone wants to get tax forms from the Oklahoma Tax Commission then one needs to actually write to them requesting the relevant forms and stating what they are for. This is because there are a number of different forms available.
