Tuesday, November 27, 2007

November 27,2007 Scribe Post

In today's class we started with mental math on spreadsheets. When we finished correcting the papers, Mr.Kuropatwa began talking about Sales Tax.


  • Sales Tax consists of GST and PST:
    GST:
    Goods & Services Tax (if buying basic needs such as food, clothes)
    PST: Provincial Sales Tax

Mr.Kuropatwa had told us about taxes and how they change every year. He also mentioned a thing or two about what kind of things were never taxed. Such as books, because they contain information to educate, and food because its basic requirement.


Goods & Services Tax


Some examples of GST would be:



  • If you buy 6 dozen muffins, you won't be taxed.
  • If you buy less than 6 items, you were buying a "service".
  • Buying 6 muffins you wouldn't get taxed. (prepared foods)
  • A haircut is not a good, it's a service.
  • Getting a car fixed is buying a service, which means you get taxed.

Provincial Sales Tax

  • anything sold in a province gets taxed.

Example:

  • used car - no GST
  • new car - both GST & PST

Some provinces have HST such as New Brunswick, P.E.I and Quebec. HST stands for Harmonized Sales Tax.


We were given an example to find the Final price of a new computer when taxes are included

EXAMPLE: Dave lives in Nelson, British columbia. How much tax will he have to pay to buy a new computer that costs $2565.00? What will be the final price when taxes are included.

Step (1) Look for B.C tax
, PST: (7%) GST (6%)

(2) Find 6% (6/100=0.06)
Find 7% (7/100=0.07)

(3) Multiply the percentage by the cost of the computer:

GST: 0.06 x $2565.00 = $153.90
PST: 0.07 x 2565.00 = $179.55


(4) To find the total tax, add the PST and GST together to get the answer:


$153.90 + $179.55 = $333.45


Next Scribe will be ... Kay-Ti

3 comments:

JoyceC said...

Heey Jenna,
I like the way you laid out your scribe post. I have two questions for you =D

Have you learned something new today, what was it? Also, did you understand how the GST and PST works?

Tawna said...

Hi Jenna,

I am glad you are learning about taxes. I find myself all too often forgetting that taxes will be added on to the price when I get to the till. When you were in class did you find out the total price of a grocery list with some items that needed to be taxed and others that did not? I wish I knew all of the items that are taxed and others that are not. Very in depth scribe, very good job.

Tawna B
(U of R mentor)

Anonymous said...

This is a great post. I live on my own and buy my own groceries and I never really stopped to look at what was taxed and what wasn't. You gave a great explanation of the two different taxes. By adding examples it made it even more understandable. This post made me go and look at my grocerie bill and while I was looking at it I could not find what was being taxed and what wasn't. I was wondering if you could help me figure this out so maybe next time I can save myself some money at the grocerie store.

Rae-Lynn S.
(U of R Mentor)