Sales Tax, Discounts and Tips Review

All states have a general sales tax.

• Yes

• No

Sales taxes are taxes placed on the sale of goods (items) or services.

• Yes

• No

States and local governments make their own rules about which goods and services will be taxed.

• Yes

• No

Income from sales tax is called revenue.

• Yes

• No

Sales taxes are used to fund programs by the government such as public schools and police departments.

• Yes

• No

Discounts are given by the store every time you buy something.

• Yes

• No

Discounts encourage customers to buy more goods.

• Yes

• No

Michelle wants a digital camera that costs $160.00. The store is advertising a 25% discount. The total discount would be $25.00.

• Yes

• No

James spent $75.00 and had a coupon for a 10% discount. His purchase price before taxes is $65.

• Yes

• No

You can get a discount and be charged sales tax during the same purchase.

• Yes

• No