What is the difference between an excise tax and a sales tax? Excise taxes are collected by the state and sales taxes are collected by cities. Excise taxes are collected by cities and sales taxes are collected federally. Excise taxes apply to certain items and sales taxes apply to most items. Excise taxes apply to most items and sales taxes apply to certain items.

the correct answer is:

Excise taxes apply to certain items and sales taxes apply to most items

Explanation:

The excise tax differs from the sales tax in two ways:

First, while the sales tax is applied to almost everything you can buy, the excise tax applies to specific products, usually in luxury items or those related as the source of specific health problems such as alcohol or tobacco.

Second, the sales tax is a percentage of the sale price. The excise tax is a fixed tax applied before the purchase price of specific items.

Excise taxes apply to certain items and sales taxes apply to most items

Explanation:

Excise tax contrasts from sales tax in two basic manners. To begin with, it is just on specific products. While sales applies to pretty much all that you purchase, the Excise tax is applied to particular products. The most widely recognized models are extravagance products or those that have been connected to specific medical problems like cigarettes, liquor, and tanning salons.

The level of tax applied is set by the neighborhood government, and 45 States in America have such a business charge. Extract charge then again is a level duty applied before the price tag for specific things, some of them by states and some by the Federal Government.