Legal Definitions - gross-receipts tax

A gross-receipts tax is a type of tax that is imposed by the government on individuals, businesses, transactions, or property to generate public revenue. This tax is usually a percentage of the total amount of money received by a business or individual, regardless of their expenses or profits.

• An example of a gross-receipts tax is a sales tax, which is a tax on the total amount of sales made by a business.
• Another example is a business license tax, which is a tax on the total amount of revenue earned by a business.

These examples illustrate how a gross-receipts tax is calculated based on the total amount of money received, without taking into account any expenses or profits. This type of tax can be applied to various types of transactions or activities, such as sales, services, or licenses.