No Local Sales Tax On Small Purchase?

CEDAR RAPIDS – Overheard at a Cedar Rapids gas station: “Why is the 1-percent sales tax 1 cent when I buy something for less than a buck?”

Because there’re no half cents?

The cashier’s response, by the way: “I just do what the register says.”

Is the economy really this bad that people wonder about saving half cents?

Advertisements

3 Responses to No Local Sales Tax On Small Purchase?

  1. Rick Smith says:

    Christoph: Look at the Iowa Department of Revenue’s sales tax chart at http://www.state.ia.us/tax/educate/79106.pdf (It is four pages long; the last page relates to Cedar Rapids where sales tax is now 7 percent) — Rick

  2. I checked my own receipt for my purchase from that store. I bought items for $1.88 (before taxes).

    State tax: $0.07
    Local/city tax: $0.01

    Pretty sure he was talking about the second item, though I didn’t ask.

  3. Christoph Trappe says:

    The math on the receipt doesn’t add up either, based on the chart.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: