When you consider the meaning of government taxes on sales, several thoughts may come into your mind. In all probability, the first thing that will come into mind is a state sales tax. Although this is the most common, it is not the only means. Some states also have a use tax, a luxury tax, and other types of government taxes on sales. On some products, there is also a federal excise tax on certain products, though it usually pertains to communications products such as telephones and mobile devices.
Other government taxes on sales you may find include transfer taxes on a car, real estate transfer taxes, cigarette tax, alcohol tax, gasoline tax, luxury tax usually charged for hotel/motel stays, and transportation taxes on airline, bus, and train tickets. Many other government taxes on sales are possible, but many are hidden so that the consumer is not aware of all of the potential taxes. One might also consider the gross receipts tax in the category of government taxes on sales since it involves the taxation of a company’s sales.