What type of taxation is this?

I noticed I was overcharged on sales tax for a product I had bought. I wrote the Fulton County finance director for an explanation. He replied that the product, unknown to me, was on sale. The sales tax had been computed on the alleged original price.

Which made me wonder how far this policy goes. If a car dealer, for instance, sells a car for $17,000 but charges the sales tax on the $20,000 that he says the car is worth, the consumer would be nipped for that extra $240 sales tax.

Maybe a tax accountant could sort this one out.




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