PAD 743 Sales Tax PDF

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Summary

In the "Public Sector Financial Management" course, chapter is based on sales tax and how the process of distributing and collecting the tax works. In this document key terms, definitions, concepts, etc....

Description

Public Administration 743 Sales Tax

● A type of tax that the government imposes on particularly for sales of goods & services

● Are revenues for the government

● Broken down into 3 categories: 1.

Seller (vendor) privilege taxes: charging individuals for charging individuals for having the advantage of doing business such as for making retail purchases

2.

Consumer excise (sales) taxes: charging individuals for making retail purchases

3.

Retail transaction taxes: are charged on the transaction for both the individual & purchasers 3.1.

●

Most common method for generating revenues

Factors that can influence the growth of sales tax are the changes in economy & policies:

➢ Economical factors: ○ Tourism trends ○ Changes in the price of gasoline & fuel oil ○ Consumers spending money on furniture & cars ➢ Environmental factors: ○ Events related to the weather

★Sales tax rates are highly valuable and the fiscal health depends on the impact made by the local government ● Sales tax is one of the revenues that can be counted to regulate the economy as sales are made every day ● Sales taxes are one of the largest revenues for state and local governments

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