Gross receipts tax

Okay kiddo, so you know how sometimes when you buy something, you have to pay a little extra money called sales tax? Well, sometimes when companies sell things, they also have to pay a tax called a gross receipts tax.

Imagine a company sells toys. They keep track of how much money they make from selling the toys. Then, they have to pay a certain percentage of that money as gross receipts tax to the government.

The gross receipts tax is a way for the government to raise money to pay for things like schools and roads. Just like how you have to pay for your toys and treats, the government also has to pay for things it needs.

Sometimes companies don't like the gross receipts tax because it can make it harder for them to make a profit. But it's important to remember that the money raised from the tax helps everyone in the community.