Question

Types of Taxes Quick Check
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What are the differences between a sales tax and a use tax?(1 point)

A sales tax is collected when a good or service is purchased by a consumer while a use tax is collected when a good or service is purchased by a businesses.

A sales tax is levied on the purchases of goods while a use tax is levied on the purchases of sevices.

A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.

A sales tax on goods and services is paid by a region's residents and a use tax is paid by non-residents, both at the point of sale.
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Answer 1

Answer: 3

Explanation: Sales tax is collected at the point of sale by the seller. Use tax is owed by the purchaser when no sales tax was collected (for example on out-of-state or online purchases) to tax the use/consumption of the item in the purchaser’s jurisdiction.