Question

Say that you are about to make a major purchase and would like to save money on sales tax. Which of these is a viable way to reduce the amount you will pay on sales tax?

a.Sales tax is a tax like any other, so you can claim additional dependents and get a deduction on it.
b.Businesses are allowed to charge a 1% fee for automatically calculating sales tax for you, so you should calculate the sales tax out yourself.
c.Sales tax varies by state, so you can travel to a state with a lower tax rate and make your purchase there.
d.If you buy an item on credit, the credit bureau must pay the sales

Answer 1

One viable way to reduce the amount you will pay on sales tax is to travel to a state with a lower tax rate and make the purchase there.

Answer 2

I believe the answer is: C. Sales tax varies by state, so you can travel to a state with a lower tax rate and make your purchase there.

Even though this method of reduction is legal, you need to consider if the amount of sales tax deducted is larger compared to the transportation cost that occurs when buying the product on different states. In general, this method could only work if you are making large purchases.