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.
Sales and use tax (sales tax) is applied to: 1  tangible personal property (unless specifically exempt); 2  gas, electricity, refrigeration and steam, and telephone service; 3  selected services;  food and beverages sold by restaurants, taverns, and 1  caterers; hotel occupancy; 2  and. certain admission charges and  dues.