Determining how much sales tax to remit to a state requires careful calculations based on an understanding of that state’s statutes and regulations. Tax professionals know that “gross receipts” are only the starting point in determining the basis for sales taxation. Sales tax expert Robert J. Fields, M.B.A., provides an excellent primer for the novice and refresher for the expert in his chapter on measuring the sales tax in the just-released Sixth Edition of Understanding and Managing Sales and Use Tax. Fields points out that a patchwork quilt of “exclusions” and “exemptions” will drive how much tax should really be paid.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.
