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.
Sale tax is a compulsory contribution to state and local revenue, imposed by those governments on retail sales (sale of tangible personal property for use or consumption). Sales tax is actually a combination of occupation tax and use tax. Occupation tax is imposed on a sellerâs receipts, and use tax is imposed on a the amounts paid by customers. Sellers owe the occupation tax to the stateâs department or revenue, and reimburse themselves by collecting the use tax from their customers.