Wisconsin Motor Vehicle Salesperson Manual Practice Test

The inclusion of sales tax in an advertised price for a motor vehicle is essential because it is a tax that buyers will have to pay at the time of purchase. Sales tax is typically a percentage of the sale price and is calculated based on the state and local tax rates applicable to the purchase of tangible personal property, including motor vehicles.

By advertising the price of a vehicle inclusive of sales tax, dealerships provide transparency and clarity to potential buyers regarding the total amount they will be expected to pay. This practice ensures consumers are not surprised by additional costs at the point of sale, thereby reinforcing trust and improving the purchasing experience.

In contrast, income tax and property tax are not directly associated with the sale transaction of a motor vehicle. Excise tax, while it may be relevant in some contexts, is not typically included in the quoted price for vehicle sales in the same way sales tax is. Therefore, sales tax is the correct choice for what must be included in an advertised price to accurately reflect the total cost to consumers.