Question

Which of the following statements best describes the difference between sales tax and property tax?
a.
Sales tax is applied to items as they are purchased while property tax is applied to items already owned.
b.
Sales tax is applied repeatedly while property tax is paid only once for as long as you own the item.
c.
Sales tax can be applied to a new speed boat while property tax cannot.
d.
Sales tax is strictly meant for food and consumables while property tax is meant for non-food items.

Answer 1

a.

Sales tax is charged when you buy an item (a transaction tax), while property tax is assessed on items you own (usually real estate, paid periodically based on assessed value).