If this picture is correct, one question is how does the supposed last seller know that the buyer isn't going to turn around and sell the item? Seems to me that the markup method would guarantee no multiple taxation not matter how many times it sold.
Figure is not from Cain’s website, looks like it’s from 999calculator.com?
I think the difference between “RETAIL” and “WHOLESALE” answers your question...if I buy a new car then I pay 9%. If I buy a USED car I don’t pay 9%.
If this picture is correct, one question is how does the supposed last seller know that the buyer isn’t going to turn around and sell the item? Seems to me that the markup method would guarantee no multiple taxation not matter how many times it sold.
the sales tax is collected at the retail level..if the buyer turns around and sells it it is used and not taxable...the tax will be on the receipt.