Editing Taxation in the United States (section)

==Sales and excise taxes==
[[File:Sales tax by county.webp|thumb|320px|
{{color box|#c4c4c4}} 0% <br />
{{color box|#65eb6c}} 3% <br />
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===Sales and use tax===
{{Main|Sales taxes in the United States}}
[[File:Average Effective Sales Tax of the 50 States (2007).gif|thumb|The average effective sales tax for different income groups of the combined 50 States (2007)<ref>Carl Davis, Kelly Davis, Matthew Gardner, Robert S. McIntyre, Jeff McLynch, Alla Sapozhnikova, [http://itepnet.org/whopays3.pdf "Who Pays? A Distributional Analysis of the Tax Systems in All 50 States"] {{Webarchive|url=https://web.archive.org/web/20120515120630/http://www.itepnet.org/whopays3.pdf |date=2012-05-15 }}, Institute on Taxation & Economic Policy, Third Edition, November 2009, p. 118.</ref>]]

There is no federal sales or use tax in the United States. All but five states impose sales and use taxes on retail sale, lease and rental of many goods, as well as some services. Many cities, counties, transit authorities and special purpose districts impose an additional local sales or use tax. Sales and use tax is calculated as the purchase price times the appropriate tax rate. Tax rates vary widely by jurisdiction from less than 1% to over 10%. Sales tax is collected by the seller at the time of sale. Use tax is self assessed by a buyer who has not paid sales tax on a taxable purchase.

Unlike [[value added tax]], sales tax is imposed only once, at the retail level, on any particular goods. Nearly all jurisdictions provide numerous categories of goods and services that are exempt from sales tax, or taxed at a reduced rate. Purchase of goods for further manufacture or for resale is uniformly exempt from sales tax. Most jurisdictions exempt food sold in grocery stores, prescription medications, and many agricultural supplies. Generally cash discounts, including coupons, are not included in the price used in computing tax.

Sales taxes, including those imposed by local governments, are generally administered at the state level. States imposing sales tax require retail sellers to register with the state, collect tax from customers, file returns, and remit the tax to the state. Procedural rules vary widely. Sellers generally must collect tax from in-state purchasers unless the purchaser provides an exemption certificate. Most states allow or require electronic remittance of tax to the state. States are prohibited from requiring out of state sellers to collect tax unless the seller has some minimal connection with the state.<ref>''[[Quill Corp. v. North Dakota]]'' and ''[[National Bellas Hess v. Illinois]]'' both prohibit states from imposing a sales and use tax collection obligation on out of state sellers with no nexus in the state.</ref>

===Excise taxes===
{{Main|Excise tax in the United States}}

'''Excise taxes''' may be imposed on the sales price of goods or on a per unit or other basis, in theory to discourage consumption of the taxed goods or services. Excise tax may be required to be paid by the manufacturer at wholesale sale, or may be collected from the customer at retail sale. Excise taxes are imposed at the federal and state levels on a variety of goods, including [[Alcohol tax|alcohol]], tobacco, tires, gasoline, diesel fuel, coal, firearms, telephone service, air transportation, unregistered bonds, and many other goods and services. Some jurisdictions require that tax stamps be affixed to goods to demonstrate payment of the tax.{{Citation needed|date=September 2018}}