1 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Sales Tax in CE Data

Barbara Johnson-Cox 

Economist

Division of Consumer Expenditure Surveys

CE Microdata Users Workshop

July 18 – 20, 2018
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Outline

 Sales Tax Rate Edit – Overview

 Sales Tax – Interview Survey

 Sales Tax – Diary Survey

 Sales Tax – Applying Sales Tax Rates

 Sales Tax Rate – Resource Sites

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Purpose: 

 The basic function of this edit is to add

sales taxes to selected cost fields where 

the “sales tax” was not included.

 Sales taxes are calculated by applying the 

sales tax rate to the reported cost of the 

item. 

Sales tax = Cost * rate 

Sales Tax Edit - Overview
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Sales Tax – Interview Survey

 The respondent is “asked” if the reported cost

included “sales tax” (for specific items).

Household appliances and equipment

Household item repairs and service contracts

Household furnishings 

Clothing, clothing services, watches, jewelry

Owned vehicles

Vehicle maintenance and repair

 If the response is “No” the sales tax edit will add sales 

taxes to the reported cost and change the “No” 

answer to “Yes” (sales tax is included).
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Sales Tax – Diary Survey

 Respondents are instructed NOT to include any 

sales taxes in Parts 1, 3, and 4 of the Diary. 

 Part 1. Food and Drinks for Home Consumption

 Part 3. Clothing, Shoes, Jewelry, and Accessories

 Part 4. All Other Products, Services, and Expenses

 The sales tax edit will add “sales taxes” to the 

cost fields of the items that are reported.
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Sales Tax – Diary Survey

 In Part 2 of the Diary – respondents are 

instructed to include the “sales taxes” in the 

total cost.

 Part 2. Meals, Snacks, and Drinks Away from Home

 The sales tax edit will “assign” a sales tax 

“rate” to each item.
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Applying Sales Tax Rates

 CE “Sales tax rates” are determined by combining the 

State, County and City sales tax rates.

 States can have multiple sales tax rates that are 

applicable to different items.

State X: 

General Sales Tax Rate = 9%

Groceries = 3.5%

 The sales tax edit selects the “Sales tax rate” by 

matching the State with the Item – within the Sales Tax 

Rate files. 
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Applying Sales Tax Rates

 That “rate” is then applied to the cost to obtain 

“Total Cost” – which includes the sales tax”. 

Total Cost = Cost * (1 + RATE)

Ex: $10.60 = $10.00 * (1.06) 

 Sales taxes are included in the cost variables in 

the Microdata.
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Both Surveys

Additional Details:

The total cost is rounded.

Output is reviewed by an analyst

to ensure that sales taxes are not 

applied twice.
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Sales Tax Rate Files

 Two files: Interview and Diary

Organized by State and Item

Updated annually
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Sales Tax Rate Resource Sites 

 Sales Tax Rates – Resource Sites:

State Department of Taxation & Revenue

 Federation of Tax Administrators – http://www.taxadmin.org

 The Sales Tax Clearinghouse – https://thestc.com/STRates.stm

 Tax Foundation - http://taxfoundation.org

 Avalara Tax Rates - http://www.avalara.com/taxrates

 Sale-Tax.com - http://sale-tax.com
Contact Information

12 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Barbara Johnson-Cox

Economist

Division of Consumer Expenditure Surveys

www.bls.gov/cex

202-691-6900

cexinfo@bls.gov