Princeton's WordNet(1.00 / 1 vote)Rate this definition: 1  word(noun) a unit of language that native speakers can identify. words are the blocks from which sentences are made; he hardly said ten words all morning. 2  word(noun) a brief statement. he didn't say a word about it.
An aspect of fiscal policy. A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax.
What is the difference between sales tax and use tax? The sales tax is imposed on retail transactions. It applies to all retail sales of tangible personal property, and in some states services, in the state. The use tax is imposed on consumers of tangible personal property that is used, consumed, or stored in this state. Consumerâs use tax applies to purchases from out-of-state vendors that are not required to collect tax on their sales. Sales and Use tax generally applies to most leases of tangible personal property.