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To calculate the sales tax, we first need to find 5% of $13.08:
$13.08 x 0.05 = $0.654
Therefore, the sales tax on the item is $0.654.
To find the total cost including sales tax, we add the original price and the sales tax:
$13.08 + $0.654 = $13.734
Rounded to the nearest cent, the item costs $13.73 including sales tax.