Which tax is collected by retailers on taxable retail sales?

Sales tax is the correct answer because it is a consumption tax that retailers are required to collect on the sale of goods and services that are subject to taxation. When a consumer purchases an item at a store, the retailer adds the sales tax to the price of the goods. This tax is then remitted to the government, typically on a state and local level, as a part of compliance with tax law.

Retailers are responsible for collecting the sales tax at the point of sale, thus acting as the intermediary between the consumer and the government. The amount of sales tax can vary depending on the jurisdiction, as different states and localities have varying rates and rules regarding what goods are taxable. This ensures that the government can generate revenue from consumer purchases.

Income tax, property tax, and capital gains tax serve different functions and are applied in different contexts. Income tax is levied on individuals and business earnings, property tax is based on the value of real estate, and capital gains tax pertains to profits made from the sale of assets or investments. These taxes do not relate to the retail sale transactions directly like sales tax does.