Which of the items is correct regarding a use tax?
A)Use taxes are imposed by every state.
B)Use taxes only apply when the seller is not required to collect the sales tax.
C)Amazon collects use taxes on behalf of all its resellers.
D)States choose to implement either a sales tax or a use tax but not both.

Question

Quizplus · Accepted Answer

Use taxes are typically imposed by states when the seller does not have a physical presence in the state and/or is not required to collect sales tax. Therefore, option B is correct. Option A is incorrect because not every state imposes a use tax. Option C is incorrect because although Amazon collects sales taxes on behalf of some of its resellers, it is not responsible for collecting use taxes. Option D is incorrect because some states have both a sales tax and a use tax.

Which of the Items Is Correct Regarding a Use Tax