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

Question

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 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.

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 difference between sales tax and use tax. Sales tax is collected at the time of purchase, while use tax applies to purchases made without the payment of sales tax, typically for items bought out of state or online.