What Is the Major Difference Between a Sales Tax and an Excise

question 36

Multiple Choice

What is the major difference between a sales tax and an excise tax?

• A) Sales taxes are levied by state governments, while excise taxes are levied only by the federal government.
• B) Sales taxes are imposed on the purchase of a wide variety of items, while excise taxes are imposed on the purchase of a few specific items.
• C) Sales taxes must be collected by the seller, while excise taxes must be paid directly by the purchaser.
• D) Sales taxes are imposed on the purchase of tangible goods, while excise taxes are imposed on the purchase of services.

---

Definitions:

Two-part Tariff

A pricing strategy that involves a fixed fee plus a variable usage fee, commonly used in services or utilities pricing.

Season Ticket Holders

Individuals or entities that purchase tickets for an entire season of a sporting, cultural, or entertainment event, often at a reduced rate per event.

St. Louis Rams

A professional American football team that was based in St. Louis, Missouri, before relocating.

Bundling

The practice of selling several products or services together as a single combined unit.