Asked by Yay
What is the difference between an excise tax and a sales tax?
Excise taxes are collected by the state and sales taxes are collected by cities.
Excise taxes are collected by cities and sales taxes are collected federally.
Excise taxes apply to certain items and sales taxes apply to most items.
Excise taxes apply to most items and sales taxes apply to certain items.
All Answers 1
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Correct answer: "Excise taxes apply to certain items and sales taxes apply to most items."
Explanation: Excise taxes are imposed on specific goods (e.g., gasoline, tobacco, alcohol) and often charged per unit or per quantity. Sales taxes are a percentage added to the retail sale price of most goods and services at point of sale and remitted to the taxing authority.
Explanation: Excise taxes are imposed on specific goods (e.g., gasoline, tobacco, alcohol) and often charged per unit or per quantity. Sales taxes are a percentage added to the retail sale price of most goods and services at point of sale and remitted to the taxing authority.
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