Watch out! There are almost 10,000 sales tax jurisdictions in the U.S., each with its own unique traps and quirks. Don’t get caught!

1. SOURCES:
The Chicagoist, http://chicagoist.com/2007/03/22/ask_chicagoist_fountain_drink_tax.php
Maine State Legislature, http://www.mainelegislature.org/legis/statutes/36/title36sec4303.html
New York Department of Taxation and Finance, http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sales_by_restaurants.htm
US News, http://money.usnews.com/money/blogs/my-money/2012/04/04/top-10-strangest-state-taxes
Top Class Actions, http://topclassactions.com/lawsuit-settlements/lawsuit-news/49941-papa-johns-tenatively-reaches-class-action-settlement
Cleveland.com, http://www.cleveland.com/court-justice/index.ssf/2015/01/cleveland_federal_judge_lets_c.html
California State Board of Equalization, http://www.boe.ca.gov/lawguides/business/current/btlg/vol1/sutr/sales-and-use-tax-regulations-art8-all.html
2015-0059-12 © 2015 CCH Incorporated and its affiliates. All rights reserved.
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When a product is returned to a store in a
DIFFERENT TAXING JURISDICTION
than it was purchased in, the refund amount
must match the rate at the time of purchase,
not the rate of the return location. Which
mega‑retailer is currently facing a class‑action
lawsuit over this trap? Find out!
Blueberries are
an important
and controlled
commodity in
MAINE, and
are taxed at an
additional 1.5 cents
per pound. That’s a
berry taxable fruit.
Like most states,
there is no sales
tax on fruit sold
in CALIFORNIA,
unless you buy your
fruit from a vending
machine, in which
case it’s taxed at a
shocking 33%!
In CHICAGO, soda
purchased from a fountain
is taxed at 9%, while the
very same soda purchased in
a bottle or can is taxed
at only 3%.
NEW YORKERS love their bagels,
but face varying sales tax depending
on how they are prepared. You’ll
pay more in sales tax for a
sliced bagel than that very same
bagel if it were whole.
New York’s bagel policy is far from the
only food preparation tax trap. In fact,
MANY STATES have similar policies
regarding how food is prepared
and where
it’s eaten.
In addition to the soda tax,
CHICAGO also taxes candy at
five times the rate of “normal”
food. Oddly, this tax doesn’t apply
to candy that includes flour or
requires refrigeration.
MANY STATES have forms of “Gross
Receipts Taxes,” which apply to all
receipts of goods and services sold.
While gross receipts taxes aren’t
technically sales tax, they’re similar,
and catch many companies off guard.
Taxes that apply to many diverse
businesses — like Gross Receipts Taxes —
are low-hanging fruit for state taxing
agencies. With roughly 30% of state
revenue drawn from sales and use tax,
you can bet they’ll be looking!
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There are almost 10,000 sales tax jurisdictions
in the United States, each with its own unique
traps and quirks.
Don’t get caught by these hidden regulations!
WATCH
OUT!
DON’T GET CAUGHT IN
Hidden Sales and
Use Tax Traps!
In ARKANSAS, there’s a
financial incentive to stick
with the natural look —
tattoos, piercings and
electrolysis hair removal
all face a 6% sales tax.
In FLORIDA, among other places,
separately-stated delivery charges
are not taxable. Do you
know which national
pizza chain got caught
in this trap?