Answer: In layman's terms, that means if the original price of something you sell was $100, but you offer a 50% discount, then the taxable price is $50. Sale Price = original price – (% of discount * original price)
Sales Tax = Sales Tax rate * Sale Price.
Sales Tax = 0.05 * $17.21 = $0.8605 = $0.86. How do I add 5% to a number?
Divide the number you wish to add 5% to by 100.
Multiply this new number by 5.
Add the product of the multiplication to your original number.
Sales tax is an increase in the price of the item while a discount is the decrease of the price. A 5% sales tax is an increase since your paying an extra 5% of the item price. 15% discount is a decrease since your now only paying 85% of the original price. Hope that helps
