About Sales Tax - open to bidding

A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase. Laws may allow sellers to itemize the tax separately from the price of the goods or services, or require it to be included in the price (tax-inclusive). The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods or services from sales and use tax. TYPES Types[edit] Cash register receipt showing sales tax of 8.5% A conventional or retail sales tax is levied on the sale of a good to its final end user, and is charged every time that item is sold retail. Sales to businesses who later resell the goods are not charged the tax. A purchaser who is not an end user is usually issued a "resale certificate" by the taxing authority and required to provide the certificate (or its ID number) to a seller at the point of purchase, along with a statement that the item is for resale. The tax is otherwise charged on each item sold to purchasers who do not provide such a certificate and who are under the jurisdiction of the taxing authority.[1][2] Other types of sales taxes, or similar taxes, include: Manufacturers' sales tax: a tax on sales of tangible personal property by manufacturers and producers Wholesale sales tax: a tax on sales of wholesale of tangible personal property when in a form packaged and labeled ready for shipment or delivery to final users and consumers. Retail sales tax: a tax on sales of retail of tangible personal property to final consumers and industrial users[3] Gross receipts taxes, levied on all sales of a business. This tax has been criticized for its "cascading" or "pyramiding" effect, in which an item is taxed more than once as it makes its way from production to final retail sale.[4] Excise taxes, applied to a narrow range of products, such as gasoline or alcohol, usually imposed on the producer or wholesaler rather than the retail seller.[5] Use tax, imposed directly on the consumer of goods purchased without sales tax, generally items purchased from a vendor who is not under the jurisdiction of the taxing authority (e.g., a vendor in another state). Use taxes are commonly imposed by states with a sales tax, but are usually only enforced for large items such as automobiles and boats.[6] Securities turnover excise tax, a tax on the trade of securities.[7] Value added taxes, in which tax is charged on all sales, thus avoiding the need for a system of resale certificates. Tax cascading is avoided by applying the tax only to the difference ("value added") between the price paid by the first purchaser and the price paid by each subsequent purchaser of the same item.[8] FairTax, a proposed federal sales tax, intended to replace the U.S. federal income tax.[9] Turnover tax, similar to a sales tax, but applied to intermediate and possibly capital goods as an indirect tax.[10] Most countries in the world have sales taxes or value-added taxes at all or several of the national, state, county or city government levels. Countries in Western Europe, especially in Scandinavia have some of the world's highest valued-added taxes. Norway, Denmark and Sweden have higher VATs at 25%, Hungary has the highest at 27%,[11][12] although reduced rates are used in some cases, as for groceries, art, books and newspapers.[13] In some jurisdictions of the United States, there are multiple levels of government which each impose a sales tax. For example, sales tax in Chicago (Cook County), IL is 10.25%—consisting of 6.25% state, 1.25% city, 1.75% county and 1% regional transportation authority.