Final answer:
Sales and use taxes vary widely across different jurisdictions, with rates ranging from 0% to over 16%. They are major revenue sources for state and local governments, along with property taxes and intergovernmental revenues. While some states forgo sales taxes, they may have higher rates for other forms of tax.
Step-by-step explanation:
The number of different jurisdictions that levy sales and use tax can indeed be complex. Sales taxes are a percentage of the purchase price of consumer goods and services and are a primary revenue source for state and local governments. These taxes vary by state, and within states, they can vary by county, city, and other local jurisdictions. The rates can range from 0% to over 16%, with some items such as food and medicine often exempt. Furthermore, while some states may not levy a sales tax, they might have higher rates for other taxes such as property or income taxes to compensate for revenue.
At the state and local level, taxes have been rising alongside spending over the past few decades. The revenue sources for these governments include sales taxes, property taxes, and funds from the federal government, known as intergovernmental revenues. In addition to sales taxes, fees for government services like license plates and hunting licenses are also common. Sellers generally collect sales taxes at the point of sale, while use tax is remitted by buyers of taxable items who did not pay sales tax at the time of purchase.