undefined | Better HN

0 pointsdhosek3y ago0 comments

Depends on the location. Sales taxes are determined at the state, county and municipal level and apply to different things in different places (so, for example, Illinois does not charge sales tax on magazines, but California does, and the tax rate on a single donut may be higher than the tax rate on a dozen donuts (prepared food vs groceries).

0 comments

jsjohnst3y ago

> the tax rate on a single donut may be higher than the tax rate on a dozen donuts

It’s even worse than that, which I learned unfortunately at a former employer. Two identically priced dresses could have different tax rates based on the formality of one vs the other, ie one being a simple LBD and the other being a sequined evening gown.

dhosekOP3y ago

Does that apply to sales tax or import duties though? I’m not aware of any jurisdiction which has different sales tax rates for different types of clothing. Import duties are a whole other can of worms (in some cases, products are partially disassembled before crossing the border to lower the import duties and then reassembled after import).

jsjohnst3y ago

> I’m not aware of any jurisdiction which has different sales tax rates for different types of clothing

I’ll have to ask someone as I’ve forgotten the specific jurisdiction, but yes, it was sales tax specifically. If memory serves, it was either a county or municipality sales tax I thought in one of the states of the United States, but I’ll see if I can confirm.

Edit:

Here’s one source:

https://www.avalara.com/blog/en/north-america/2020/02/how-to...

In that case, it’s statewide it seems for Pennsylvania. Clothing in general isn’t taxed, but formalwear is.

I know there are a lot more odd variations than just that.

j / k navigate · click thread line to collapse

0 comments

jsjohnst3y ago

> the tax rate on a single donut may be higher than the tax rate on a dozen donuts

dhosekOP3y ago

jsjohnst3y ago

> I’m not aware of any jurisdiction which has different sales tax rates for different types of clothing

Edit:

Here’s one source:

https://www.avalara.com/blog/en/north-america/2020/02/how-to...

In that case, it’s statewide it seems for Pennsylvania. Clothing in general isn’t taxed, but formalwear is.

I know there are a lot more odd variations than just that.

j / k navigate · click thread line to collapse