Examine the sales and use tax statutes of your home state and determine the following:

A. What is the type of sales tax imposed by the state?

B. On whom is the legal imposition of the sales tax?

C. How is sales price defined? What is included and what is excluded from this term?

D. What are the principal exemptions from the sales tax base?
E. Does the state have a machinery exemption? If so, how is machinery defined?
F. Are monies received for warranties subject to sales tax? What about extended warranties?