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

Question

Responses

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 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.

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 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.

Answer 1

The correct response 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 accurately describes the primary distinction between the two types of taxes. Sales tax is collected at the time of purchase, while use tax is imposed on goods bought in a manner that did not include sales tax (for example, purchases made from out-of-state vendors).