are imposed only on taxable transfers of goods or services. The tax is computed as the tax rate times the taxable transaction value. Rates vary by state, and by locality within a state. Not all types of transfers are taxable. The tax may be imposed on sales to consumers and to businesses. Taxable sales Transfers of tangible personal property for cash or the promise to pay cash (sales) are often subject to sales tax, with exceptions. Sales tax does not apply to transfers of real property, though some states impose a real estate transfer or documentary tax on such transfers. All states provide some exemptions from sales tax for wholesale sales, that is, sales for resale. However, some states tax sales for resale through vending machines. Purchases of gift cards are not subject to sales tax in all states. These purchases are considered to be similar to exchange of cash. The sales tax will be charged when gift cards are used as a method of payment for taxable goods or services. There was a proposal in New York State to impose a sales tax when a gift card is purchased instead of imposing it when the card is used, but it failed. Most states also exempt bulk sales, such as sales of an entire business. Most states exempt from sales tax goods purchased for use as ingredients or parts in further manufacturing. Buyers in exempt sales must follow certain procedures or face tax. Sales to businesses and to consumers are generally taxed the same, except as noted in the preceding paragraph. Businesses receive no offset to sales tax collection and payment obligations for their own purchases. This differs significantly from value added taxes. The place and manner of sale may affect whether a sale of particular goods is taxable. Many states tax food for consumption on premises but not food sold for off premises consumption. The use to which goods are put may also affect whether the sale is subject to tax. Goods used as ingredients in manufacturing may avoid tax, where the same goods used as supplies may not. Rentals Many states tax rental of tangible personal property. Often the tax is not dependent on the use to which the property will be put. Only Florida charges sales tax on the rental of commercial real estate. Exempt organizations Many states exempt charitable, religious, and certain other organizations from sales