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

Question

Responses

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 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 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.

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 means that sales tax is collected at the time of purchase in a retail transaction, while use tax is applicable when a consumer buys a product (usually from out-of-state) and does not pay sales tax at that time.