Who authorizes the collection of sales tax?

The collection of sales tax is authorized by state governments. Each state has the authority to implement its own sales tax laws, which can vary significantly from one state to another. This includes determining the tax rate, the types of goods and services that are taxable, and the procedures for collection and enforcement.

State governments usually administer the sales tax, collecting revenue that is often used to fund public services such as education, transportation, and infrastructure. Additionally, they may grant certain local municipalities the power to levy additional sales taxes, which can further diversify the tax landscape within a state.

The federal government does not impose a nationwide sales tax; its tax authority primarily concerns income tax and various excise taxes. Local municipalities may impose their own taxes, but these local taxes are typically supplemental to state taxes and require state authorization. International trade agreements do not have authority over domestic sales tax collection. Therefore, state governments represent the correct answer regarding the authorization of sales tax collection.