Sometimes, authorities impose a tax not just to raise revenue, but to attempt to control the public’s behavior toward a perceived public good. One common example is special taxes on cigarettes. Such taxes are usually intended to encourage smokers to quit, though they...
Sales Tax
New soda tax could complicate things for businesses
It appears that owners of restaurants, convenience stores and similar businesses in Philadelphia will soon have to begin collecting an extra sales tax on soda. The City Council there has passed a 1.5-cents-per-ounce tax on all drinks with added sugar or artificial...
States gearing up to challenge interstate sales tax exemption
In 1992, the U.S. Supreme Court ruled that states can only impose sales taxes on businesses that have a physical presence in those states. Of course, that ruling came down years before internet retailing became possible. Now that doing business online is ubiquitous,...
Dealing with a sales tax controversy
Income taxes are not the only form of tax that Maryland businesses owe the government. They must also pay sales tax, and if tax authorities accuse your business of under-reporting sales tax, it could mean a great deal of trouble. Few businesses deliberately...