Who typically collects sales tax?

Sales tax is primarily collected at the point of sale, and this responsibility typically falls on the vendor. When a customer makes a purchase, the vendor adds the applicable sales tax to the sale price and collects this amount from the customer. This mechanism ensures that the sales tax is collected directly during transactions, making it convenient for both the consumer and tax authorities.

Once the vendor has collected the sales tax, they are responsible for remitting it to the appropriate state government agency on a regular basis. This process facilitates the efficient operation of sales tax systems, as it leverages existing retail infrastructure for tax collection.

The other options do not directly reflect the typical processes involved in sales tax collection. Local residents do not actively collect sales tax; rather, they are the consumers who pay it. State government agencies do oversee the administration and collection of sales tax, but they do not collect it directly from consumers. Federal tax collectors are concerned with federal taxes rather than state or local sales taxes.