What is the major difference between a sales tax and an excise tax? Sales taxes are imposed on the purchase of a wide variety of items, while excise taxes are imposed on the purchase of a few specific items. Sales taxes are levied by state governments, while excise taxes are levied only by the federal government. Sales taxes must be collected by the seller, while excise taxes must be paid directly by the purchaser. Sales taxes are imposed on the purchase of tangible goods, while excise taxes are imposed on the purchase of services.