Types of Taxes Quick Check

Question

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Question
What are the differences between a sales tax and a use tax?(1 point)
Responses

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.
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.

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

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 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 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 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.
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Answer 1

The correct response to the question about the differences between a sales tax and a use tax is:

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.

This distinction highlights that sales tax is typically collected at the time of purchase, while a use tax is applied to goods and services that were bought without paying sales tax, often applicable to items purchased out of state or online.