What is a Sales Tax?
In simple terms Sales tax is the tax levied on the sales. If you live in a state there is no legal way through which you can avoid sales tax.
What’s the Law?
The consumer pays a large share of sales tax, which is incorporated in the bills for them. The current sales tax codes determine that the consumer has to pay a tax on all the purchases. In most of the cases the retailers incorporate the GST in the bill the consumer gets. According to the state codes, the consumer has to pay sales taxes even if the retailer does not collect it.
Law for online purchases
In case of online purchases where sales tax is not collected the consumer is suppose to track down the purchase and calculate the appropriate amount of tax due. After the calculation the consumer is suppose to pay the taxes directly to the state department of revenue.
The sales tax impact on consumers
Tracking down the purchase and calculating the sales tax is a unnecessary burden on consumers. This law is not appropriate because the practice is really confusing for the consumers. It is also very difficult to impose because there is no method through which state could check every individual’s complete shopping record and find if the tax is paid or not. Another downside of this method of collecting sales tax is that most of the consumers are unaware of this obligation, so the tax is often not reported. These people later on face penalties of not paying taxes at the right time.
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