What type of tax is typically collected on transactions involving goods and services?

Sales tax is the type of tax that is specifically levied on transactions involving the sale of goods and certain services. It is typically a percentage of the sales price, collected by the seller at the point of sale, and then passed on to the government. This tax is an indirect tax that consumers pay when purchasing goods and services, making it a key component of state and local taxation strategies.

In contrast, income tax is based on the earnings of individuals or businesses, while property tax is assessed on real estate properties based on their value. Corporate tax is applied to the profits earned by corporations. These types of taxes do not directly pertain to the transaction of goods and services in the same manner as sales tax does, underscoring why sales tax is the correct answer in this context.