Where does the sales tax go?

Question

When we pay sales tax, where does the tax go? I would like to know where the tax goes in California, Mississippi, New Jersey, etc. , since they have one of the highest sales tax in the country.

Answer 1

Sales tax goes to operations, activities and programs of the state collecting them. Sales tax usually goes into the general fund of the state. See your state budget for details.

Answer 2

Where Does Sales Tax Go

Answer 3

When you consider the meaning of government taxes on sales, several thoughts may come into your mind. In all probability, the first thing that will come into mind is a state sales tax. Although this is the most common, it is not the only means. Some states also have a use tax, a luxury tax, and other types of government taxes on sales. On some products, there is also a federal excise tax on certain products, though it usually pertains to communications products such as telephones and mobile devices.
In many places, state sales taxes are in force, but the question we have to ask is if they are fair to the majority of the residents of those states. For example, state sales taxes in New York State are only four per cent, but if you go to New York City, you will pay 8.375 per cent.
If you take the time to look at the charts of state sales taxes, you will find rates that range from four per cent up to over nine per cent. The question that we must ask ourselves as consumers and taxpaying citizens is why six states can make their budget needs without a sales tax while others feel the need to have both.
This is evidenced by the fact that forty-four states have a sales tax and forty-one have a state tax. Even if you eliminate the six states that do not have a sales tax that still leaves thirty-eight states that are charging both a state sales tax and a state income tax.

How do you avoid the extra cost of taxes on sales when your budget doesn't allow the extra expense? If you are surrounded by a state that doesn't have a sales tax, make it a point to make all of your purchases when you visit, or visit just to do your shopping, but make it a stop for everything you need but can't get in your home state tax free. For example, if you live in Maryland, New Jersey, or Pennsylvania, you can go to Delaware and not pay taxes on sales!

Answer 4

In California it goes into the big pot with everything else.

Answer 5

General fund, normally.