Sales tax is not applied directly to U.S. dollar bills, as they are currency used for transactions rather than goods or services. Instead, sales tax is levied on the purchase of tangible goods and certain services, calculated as a percentage of the sale price. The rate varies by state and local jurisdiction, and it is typically added to the final price at the point of sale. Therefore, while you use U.S. dollars to pay taxes on purchases, the currency itself does not incur sales tax.
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