Answer:
A sales tax is a type of indirect tax.
Explanation:
A sales tax is an indirect tax on point-of-purchase consumption for certain goods and services. This type of tax is usually calculated as a percentage of the final price to the consumer and is added to the price (tax-exclusive) or is already included (tax-inclusive).
The sales tax is the responsibility of the final consumer only; any intermediate buyer must produce a resale certificate to clear it and sales taxes are levied on any buyer who can not produce such a document.
The sales tax is set by each state and ranges from 0% (Oregon, Alaska, Montana, New Hampshire, New Mexico, and Delaware) to 8.75% (California). In some cases, cities or counties also set a sales tax, which is added to the state tax (the maximum rate is applied in some counties in commercial zones of Illinois with 11.5% in total). The national average is about 6%.
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