Sales tax is a form of consumption tax that is applied to goods and services purchased in a given jurisdiction. It is typically collected at the point of sale and remitted to the relevant government agency. In most cases, the rate of sales tax is determined by the state or local government, although some states allow for local governments to impose additional taxes. Sales tax is an important source of revenue for governments and helps to fund numerous public services, such as healthcare, education, infrastructure, and public safety.