Question

A grocery store receipt shows 5% state tax due on laundry detergent and a flower bouquet. Does it matter whether the tax is calculated on each separate item or the total cost? Explain.

Answer 1

Calculated on each separate item because, the 5% is PER ITEM for example here in Florida, there is a 7% tax but no tax on unprepared food, but if you go to Whole Foods and buy 4 burgers and a head of lettuce they tax for each burger because if it was for the total cost they would be taxing for the head of lettuce which is not what the state law says you can do.