0

I will be selling goods at a festival in New Jersey this fall. I am adding sales tax on top of my price and wondered what the laws are regarding rounding. Is it okay to round to nearest quarter rather than nickel dime and penny?

  • 3
    Why not price your goods in a way such that when tax is added, the result is a multiple of $0.25? For example, if you price something at $5.42 with a 6% sales tax, the result is $5.75. $3.97 with a 7% tax s $4.25. Just work backwards from a $0.25 multiple when pricing your goods. – brhans Sep 3 at 20:37
  • 1
    Why not sell your goods at a slightly higher price, add the sales tax and then round down? Even though it may only be nickels and dimes, by lowering the gross price, customers will not feel like you're dunning them for the difference. It will also save you the discussion of why the bill is $14.85 and you're charging $15.00 . Much easier to ask for $15 when the bill is $15.15 – Bob Baerker Sep 3 at 21:22
2

According to the NJ State Treasury site, you must round to the nearest cent.

One option might be (I don't know the laws or reporting requirements regarding this) to post prices "including sales tax" and back-calculate the actual item prices from that. I see this at fairs and other events where price differentiation is not an issue (meaning you're not trying to compete with other vendors on price).

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.