Taxes paid on the purchase of specific items such as gasoline, cigarettes, or alcoholic beverages would fall into the category of:
A) personal income tax.
B) excise tax.
C) property tax.
D) sales tax.

Question

Quizplus · Accepted Answer

Excise tax is a tax on specific goods and services, such as gasoline, cigarettes, or alcoholic beverages, and is often included in the cost of the item at the time of purchase. Personal income tax is based on a person's earnings, property tax is based on the value of a person's property, and sales tax is a general tax applied to a wide variety of goods and services.

Taxes Paid on the Purchase of Specific Items Such as Gasoline