Forum Administrator (@admin)
Dec 4th 2020, 11:58 pm
13 Views

State Sales Tax

Most, if not all, states have a sales tax that you must pay when you make a purchase. The rate of state sales tax differs from state to state, and the items that can be taxed may be different as well. In Pennsylvania, I know the tax was six percent when I last lived there, and there is no tax on clothing. However, in New York, the sales tax is higher, and there is most definitely a tax on clothing. You will have to check with your state to find out what exactly your rate is and what your tax will be applied to.

One thing that is subject to state sales tax is gas. Right now, gas prices are going up and down. They are down right now, and are almost a dollar less per gallon then they were just two months ago. I live near the state line of Pennsylvania and New York, and I was surprised to learn that by driving south a few minutes, I can get my gas in PA thirty cents per gallon cheaper. The local news has stated that New York has the highest prices in the country, and no one can figure out why. The state sales tax on gas is higher than other places, but it does not account for all of the extra money we are paying.

Because New York has state sales tax on clothing, many people go into Pennsylvania to buy clothing when they have a lot to buy. There are a few times during the year when NY has a week where you can buy clothing without the state sales tax being tacked on, and I think they do this to boost sales and to keep business within the state. If you live in New York, this is a great time to save money on clothing, and you can also save on footwear. You should look up the specifics if you want to take advantage.

If you own a business, don’t forget that you have to charge your customers state sales tax, and you have to pay this money in. You have to keep a tab on it, and you have to find out if out of state customers that may order online or through the mail will have to pay your state sales tax or not. If you are lax in these responsibilities, you are going to get in big trouble. Make sure this is something you check on every time you go over your books with your accountant.

#miscellaneous