Which of the following is True regarding use taxes?
A) A use tax is relatively easy to enforce compared to a sales tax.
B) Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.
C) Use taxes encourage taxpayers to buy goods out of state to avoid paying sales tax in their home state.
D) A use tax is generally a progressive tax.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Use taxes attempt to eliminate any tax advantage of purchasing goods out of state. Use taxes are taxes imposed on goods purchased out of state and brought into the taxing state for use or consumption, and they ensure that taxpayers who purchase goods out of state pay the same amount of tax as those who purchase similar goods in-state.

Which of the Following Is True Regarding Use Taxes