Which of the following is true regarding use taxes?
A) Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.
B) A use tax is relatively easy to enforce compared to a sales tax.
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 are designed to eliminate the tax advantage of purchasing goods out of state by requiring residents to pay a tax on goods purchased out of state and brought into their home state for use or consumption. This helps to level the playing field for businesses operating within the state, who may be at a disadvantage if customers are choosing to buy goods out of state to avoid sales tax.

Which of the Following Is True Regarding Use Taxes