Sales Tax

When you purchase a new pair of sneakers valued at $150, but are required to pay $158.50 at the register because there is a tax on the item, which type of tax have you paid?

• Corporate taxes

• General sales taxes

• Individual income taxes

• Property taxes

This kind of tax is added to a purchase you make at a store.

• Sales Tax

• Income Tax

• Property Tax

• Excise Tax

Sales tax is the tax you pay

• when you buy something.

• when you sell something.

• when you barter.

• when you give something as a gift.

Sales tax on an item may include all of the following EXCEPT

• city sales tax

• county sales tax

• state sales tax

• household sales tax

Not everything is taxed at the same rate. In many states, ___________ are exempt from sales tax.

• Clothing

• Groceries

• Toys

• Shoes

If sales tax is 10 percent, and a new pair of sneakers costs $70, how much do you actually have to pay?

• $77

• $71

• $80

• $100

What is the primary purpose of sales tax?

• To fund public services

• To increase product prices

• To encourage saving

• To reduce inflation

Which of the following items is most likely to be exempt from sales tax?

• Groceries

• Electronics

• Clothing

• Furniture

In which scenario would you not pay sales tax?

• Purchasing a book online from a different state

• Buying a car from a dealership

• Shopping for clothes in a local store

• Dining at a restaurant

If a state has a sales tax rate of 8% and you buy a laptop for $500, how much sales tax do you pay?

• $40

• $50

• $60

• $80