Sales Tax

Sales tax is a consumption tax levied upon purchase of a particular service or goods. The taxable amount is determined after applying the percentage rate to the taxable price of the goods or service.

6,319 Questions

Does the nslc site include tax in their prices?

The National Sign Language Commission does not charge tax for educational organizations.

How do you journalize a sales tax payable?

Since you are using a "payable" account we do "not" touch cash until the actual payment is made. We however still know we need a debit and a credit for this transcation. To put this in our journal we will

Debit Sales Tax Expense (check your company for exact account name)

Credit Sales Tax Payable (again check your company for account name)

Once you pay your taxes then you have to adjust these entries to reflect payment. In order to do that, we again use two accounts, this time however we do not touch Sales Tax Expense, it must stay there until we close our out books, we do however have to show that the payable has now become paid and that we no longer have that amount of cash on hand. This transaction will be adjusted in the journal as

Debit Sales Tax Payable (to zero out this account or adjust it accordingly)

Credit Cash (to show we no longer have that amount of cash on hand)

What is the reason the city collect's sales tax?

For city maintenance, Streets, Buildings, Police pay, Electric, water, gas, city parks and misc. properties, Lets Audit them and see how much of the funds get wasted, I bet if you wasted as much as any Government (I.E. City, County, State, Federal) Your competition would put you out of buiseness in A hot minute.,,,,,,,,,,,,,,,,,, In other words your service costs would be so freegin high that your competition would get ALL the customers.

Do you have to pay sales tax if you buy a used car from a non-car selling business in California?

Here are opinions and answers from FAQ Farmers: * There are probably different laws in different states, but in Kansas you show the sales tax receipt when you register the vehicle. If you did not pay sales tax to the seller, the county clerk will collect it then. * No. The BUYER probably will. * I believe that in most states when you go to register the car as the buyer you will pay sales tax on the purchase price equal to the sales tax rate of the county you live in. * Sales tax is a State tax and laws and rates do vary. Cars (like real estate) are, by the very nature of values involved, frequently handled under special rules. Generally, just like if you buy say a used washing machine from a business, that business will collect the sales tax. With cars, if you don't buy it from a business, when you go the register it, the Dept. of Mtr Vehicles will collect it for the state. If you trade a car in to a dealer, many places they can give you a credit for the value of the trade, and only charge you sales tax on the amount above it. * YES -- I just discovered yesterday that if you live in Georgia, you WILL have to pay sales tax if you buy a used vehicle from a business. This may be the rule in other states also, even if you purchase the car from out of state. Last month I flew to New York to pick up a beautiful 2003 Cadillac Escalade, and drove it back down here to Georgia. The car was loaded with everything, and I bought it from an individual (so I thought). Since I got a good price on the car compared to a dealership, and thought I would be avoiding any sales tax, I felt it was a very good deal. The only problem was that the seller had bought the car through his small business/company, in which he was a partner, and the company's name was written first above his name on the title. Yesterday, when I went to the county offices to register it, I was told that I would have to pay just over $2100 sales tax at 7% (the county rate) because the car was purchased from a business (although not a car dealership). While I am very happy with the car and still got a very good price, this is a loophole that I've never run into before. So, if you think that you are buying a used car from an individual, make sure that you ask them if it was purchased and titled under the name of a small business or company they own, otherwise you may be liable for the full taxable amount.

COMMENT/CLARIFICATION on above: The person above is confusing things: That the seller had it registered however he had (business name or not) makes no difference. When you buy a car from a NON auto dealer, you pay the tax when you register the car. When you buy it from a dealer, (who normally handles all the registration stuff for you) pay him the tax to pay the State. When you buy a car for export out of the State, the tax isn't charged until you register it in the destination State (or if it is, most States will give you a credit for the tax paid, if it was done to get a temporary transit permit).

As far as my previous response, I'm not confusing the matter, just reporting on what happened here with the county when I went to register the car. The fact that the vehicle was "owned" by a business is what affected the taxes. It would have been the same if the owner was in Georgia or in another state. I have purchased vehicles both in and out of state, and because it was from an individual, I did not have to pay sales tax at all when it was registered. These were non auto dealers, and there was no tax owed to the county gov't. I'm not trying to create confusion, just letting you know what happened to me here in Georgia.

The commenter immediately above is absolutely correct. In Georgia, a used vehicle purchased from an INDIVIDUAL (whether he/she is in-state or outside of Georgia) has absolutely no sales tax liability, either at the time of purchase or when the vehicle is registered in Georgia. If, on the other hand, you buy from an AUTO DEALER (either in-state or outside of Georgia) they are legally obligated to collect the sales tax and forward it to the Georgia Department of Revenue (retain proof of such payment in case they fail to do so). The only exception to this rule is if you buy from an out-of-state auto dealer who then ships the vehicle to you in Georgia via "common carrier" (in other words, you don't take delivery in this other state). In that case, they have no legal obligation to collect Georgia sales tax, but you will then owe "Use Tax" (same principle as sales tax) when you register your vehicle at the Georgia DMV (the exact rate of tax may vary from county to county within Georgia; you will pay the rate effective in your county of residence). If you buy from a BUSINESS ENTITY THAT IS NOT AN AUTO DEALER (say a car rental firm that's selling excess inventory), whether they are in-state or outside of Georgia you are still liable for the sales tax. It makes absolutely no difference whether that business is an auto dealership or not: it's whether the name on the seller's title is of an individual or a business that determines sales tax liability in Georgia. In short: individual seller (in Georgia or out of state) = no sales tax when registering vehicle in Georgia; business seller (auto dealer or not, in-state or outside of Georgia) = sales tax liable (with the one exception noted above, when an out-of-state dealer ships you the vehicle via common carrier -- then you are responsible for paying the "Use Tax" when you register at the Georgia DMV). NOTE: When you buy a Georgia vehicle and register it in another state, you will pay the prevailing sales tax rate in that other state. Thus, it doesn't make sense to travel to Georgia to buy a vehicle just to avoid the sales tax. Same would be true for vehicles purchased in Oregon, or any other state that doesn't tax vehicle sales (unless, of course, you also live in such state).

CLARIFICATION: If you purchasde a used vehicle from a private owner in Georgia (and you live in Georgia), then you avoid paying any sales tax on the car. Georgia considers this type of transaction a "casual sale" and only charges sales tax if the previous owner registered the vehicle for a business. Expect to pay sales tax in Georgia, however, if the previous private owner registered the vehicle for business use, or, you bought the car from a dealer. Cars purchased out-of-state also incur a sales tax. For example, if you live in Georgia and purchased a car in Florida from a private individual, you DO pay a SALES TAX in Georgia.

Previous postings incorrectly state that you don't have to pay a sales tax in Georgia if you bought a car from a private individual outside of Georgia. It does matter! I live in Georgia and purchased a new Mercedes Benz in Florida from a private individual, I HAD TO PAY A SALES TAX when registering my car in Georgia.

You do NOT have to pay sales tax in GA when a car is purchased from a privaqte seller regardless of where the private seller resides. This is deemed a casual sale. Please see the links below for the official documentation from the GA dept of Revenue:

State Regulation 560-12-1-.07 regarding sales tax (casual sale)

OK, has anyone noticed that the guy asking the question specifically refers to CALIFORNIA? Why is everyone discussing Georgia? So frustrating!

Do you have to pay taxes when selling a car?

The taxes will be payed with the new owner because it is now his responsibility.

In virtually all states, the laws governing sales tax on vehicles is different than those on other items of personal property. For example, only sales from one registered auto dealer to another are exempt - and the normal exemption forms used between licensed sales tax vendors are not able to be used.The government does not ever want anyone to collect sales tax that isn't licensed to do so. It is highly illegal.

If it is not a registered auto dealer in the sale, the tax is collected by the authorities as part of the registration/titling fees paid by the new owner, to the MVD or MVC.

The govt. would like for you to but probably NO ONE DOES in a private sale.

You can't charge sales tax unless you have a business license. Don't know about other states, but in Kansas the new owner will pay the sales tax to the county treasurer when they register a car purchased from a private party.

If you are selling cars as a professional or a business owner/car dealer, then you are of course required to pay tax for that business. If you are a private seller, the tax that you would have to pay for is concerned with the legal process of turning the ownership rights.

Can you charge taxes on haircut?

Generally there are no taxes on a service.

There was a time that the aboe was a good generalization. No longer!

While it depends on the State, over the last ecade many f not most have started some form of taxes on services and personal services (as compared to professional services) are generally targeted.

What was the Whiskey Rebellion?

The Whiskey Rebellion was a citizen revolt against a 1791 tax on whiskey. The reaction to the 1794 uprising in Pennsylvania demonstrated the determination of the US to enforce Federal laws. The militias of several states, under the personal command of President George Washington, were used to end the insurrection.

The tax on whiskey was bitterly and fiercely opposed by the settlers on the frontier from the day it was passed. Western farmers considered it to be both unfair and discriminatory, since they had traditionally converted their excess grain into liquor. Since the nature of the tax affected those who sold the whiskey, it directly affected many farmers. Many protest meetings were held, and a situation arose which was reminiscent of the opposition to the Stamp Act of 1765, before the American Revolution. Several groups were formed in opposition to the tax, and refused to pay it. Eventually the coercion of officials and private citizens prompted Washington to use military action.

(see related link below)

Shop without paying sales tax in US?

No, in most states you are required to pay sales or use taxes on your purchases based upon where you live, not on where you buy things. If an item is tax-exempt where you live, and you purchase by phone, mail, online or by traveling out of state to buy it and bring it back, then it is tax-exempt in your home state.

However, regardless of where you buy something, if it is taxable in your state of residence and you bring it into that state or have it delivered in that state, then you still owe sales and use tax on that purchase, just as if you had purchased it from a local retailer. Some states make it easy to comply with this requirement by allowing you to file an annual return and sales and use tax payment with your annual income taxes. Other states require you to pay the sales and use taxes within a very short time of your out-of-state purchase.

Failure to pay sales or use taxes on things you bought out of state is a form of tax evasion, which is a crime.

How much would sales tax be for eight dollars?

It depends upon what state you're in and what the item is. Some states have different rates for purchases of food or lodgings versus household goods and many states have various exemptions, such as medical supplies or safety equipment. Also, a few states have no general sales tax at all, and tax would only apply to specific transactions or types of goods (e.g., gasoline, alcohol, cigarettes, vehicles, prepared foods).

What do you mean by direct tax and indirect tax give suitable examples also?

A direct tax is tax paid directly to the Government, by a person whom the tax is imposed on. An indirect tax is paid indirectly to the Government, trough a third party.

A direct tax would be taxes like income taxes, where a person must personally pay a certain amount to the government. Indirect taxes are taxes such as property, social security, and sales tax, where there price of tax is either deducted from wages or added onto the payment of an item. The indirect taxes are paid the Government by the business that collects the tax.

Can the dealer add their doc fee deputy fee and dealer inventory tax to the sales price in Texas?

Here is another tip. This one is from a peer-reviewed article.

Pass Through of Tax--tax inventory fee

While VIT is actually one component of the dealer's ad valorem tax, state law allows dealers to pass on to retail buyers the unit tax attributable to that sale. The charge on a retail contract for the tax should be disclosed as "dealer inventory tax" and not misrepresented as a charge required by law or as the "buyer's inventory tax." While the VIT charge can be passed on to buyers, the law does not require that a dealer do so. In fact, the law is neutral on the issue, and an attempt to convince a buyer that the tax is a mandatory charge required by law to be added to the contract is incorrect and actionable.

Addition of the tax on the contract is a negotiable item and a dealer can refuse to sell to a buyer who refuses to have it included. Conversely, a buyer can refuse to sign a contract that has it in. you will pay interest on this fee if you are financing.

Documentary Fee---the dealership cannot charge you this fee. It is not a mandatory fee to pay to the dealership. Not only that, if you finance a vehicle, you will be paying some interest on that small fee as well.

Do you pay sales tax on wholesale purchases?

No the tax is paid by the end user.

In California, you have the option of paying sales tax at the time of the wholesale purchase or keeping records of all your purchases and paying taxes once a year.

This pay as you purchase method is used by many contractors when buying material and supplies at a wholesale supply company.

How do you calculate tax tag and title for a new car?

In buying a car the tag and title are a set price set forth by the state with a very small difference based on the person doing the notary work. Find out what that dealership charges. In most places tag and title are around 100 dollars. As for the tax, it will vary by state. Pa is .06. So to figure out tax for a car say 1000 dollars. Just use simple math. 1000 X 1.06. Or 1000 x .06 and add that number to 1000.

If you are buying a car from a private seller do you pay them sales tax?

It depends on the state laws for the state the transaction takes place in. There will be fees required at the DMV office.Registration and licensing. There may also be a requirement also in some States, requiring a smog certification, which will have to be conducted.

If your wife gives you her old car do you have to pay any tax when you get your plates?

You shouldn't need plates if your wife gave you the car. I'm a little confused by your question. If you don't get a good answer, resubmit it with more details.

probably not, but you'll find out when you go to register it.

Should you pay taxes if you had the car for less than a month and the dealer still hasn't transferred the title?

Don't see why you should. Until you get the title, it's not your car. How would the state even know that you owe taxes if you haven't taken the title to the courthouse to register the car?