BRACKET SYSTEM

bracket system. Tax law. A system for collecting a sales tax based on an index providing for a graduated payment depending on the purchase price of the item, the purpose being fourfold: (1) to avoid having the seller collect a tax less than one cent; (2) to avoid requiring the state to figure the exact amount of tax on each sale; (3) to allow the seller to have a ready means for fixing the tax to be collected; and (4) to allow the state to collect about the right amount of tax. • This system may be provided for either by statute or by administrative regulation. [Cases: Taxation 1338.

1. C.J.S. Taxation § 2062.]