Question: What is the difference between excise tax, sales tax and use tax? ___a_____ is restricted to a particular transaction while ______b___ tax covers a multitude

What is the difference between excise tax, sales tax and use tax?

___a_____ is restricted to a particular transaction while ______b___ tax covers a multitude of transactions.

____c_____ tax is an ad valorem tax on the use, consumption, or storage of tangible property purchased outside the state but used in the state.

Indicate whether the following are examples of an excise tax (Federal or state). Select "Yes" or "No", whichever is applicable.

a. Tax on alcohol
b. Tax on air travel
c. Sales tax
d. Tax on tobacco products
e. Hotel occupancy tax

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!