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:
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?
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)
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)
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