| a tax on receipts from sales, usually added to the selling price by the seller. |
| sales tax n. A tax levied on the retail price of merchandise and collected by the retailer. |
Sales Tax
A tax imposed by the government at the point of sale on retail goods and services. It is collected by the retailer and passed on to the state.
Investopedia Commentary
It is based on a percentage of the selling prices of the goods and services and set by the state.
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See also: Direct Tax, Flat Tax, Indirect Tax, Local Tax