The incidence of a state sales tax levied on the purchase of retail goods is:

Question

Quizplus · Accepted Answer

The incidence of a sales tax is ultimately borne by the consumer who purchases the retail goods, as the tax is added onto the purchase price of the item. While the seller is responsible for collecting and remitting the tax to the government, they generally pass on this cost to the consumer in the form of a higher price for the goods. Therefore, the ultimate burden of the tax falls on the consumer.

The Incidence of a State Sales Tax Levied on the Purchase