Im going to boston soon and i was looking at the sales tax rate which is 5.00% right now. It also said that clothing appearal and food may be exempt. What does it mean to be exempt from sales tax?
NOT charging sales tax on that.
Generally medicine is exempt from taxation, no sales tax on meds.
Food may be exempt or have a lower sales tax rate.
Gas has federal and state sales taxes.
Since we are discussing clothing and food as being tax exempt may mean that it does not charge taxes on clothes and food. They do this so people spend more money to help stimulate sales. So other things you may buy while there such as furniture will have a 5% sales tax that you will have to pay but you will have to pay the tax on clothes and food you buy while there.
exempt means that no tax will be charged on the "exempt" items. Usually it is a promotion to encourage retail sales, such as school clothes, etc.
It means certain items are taxed and others are not. Different states do it differently.