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.
Californiaâs state and local governments levy a tax on retail sales of tangible goods. Sales Tax on Retailers. When California retailers sell tangible goods, they generally owe sales tax to the state. Retailers typically add sales tax to the price they charge customers and show it as a separate item on sales receipts.