Quote:
Originally Posted by Inukami
I didn't realise the US tax collection system was so complex.
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In theory, it is simple. A straight percentage of the purchase price.
What makes it difficult to calculate, is that the boundaries of the various entities that raise funds via sales tax can be somewhat nebulous, I've been to at least one mall, that had lines running through it, to demarcate the borders of the fire district, school district, and some other entity that levied sales tax.
The most common entities to raise funds via sales tax are:
* State government;
* County Government;
* City/village government;
* School district;
* Fire district;
* Business improvement zone;
* Tribal area;
Furthermore, just because one remits the sales tax to the state department of revenue, that does not mean that they know how much should be collected.
Roughly a decade ago, I read an article about the lawsuit between one of these small agencies, and the state department of taxation, claiming that the latter had failed to remit collected sales tax to them. The state department's response was along the lines of "who are you?" Apparently, the state department had no idea that sales tax for that entity had been remitted to them by retailers in that agency's catchment area.
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