Which of the following is a tax? I. A 1 percent special sales tax for funding local road construction.
II) A fee paid to the state for a license to practice as an attorney.
III) An income tax imposed by Philadelphia on persons working within the city limits.
IV) A special property assessment for installing a new water system in the taxpayer's neighborhood.
A)Only I is correct.
B)Only IV is correct.
C)Only III is correct.
D)III and IV are correct.
E)I and III are correct.

Question

Quizplus · Accepted Answer

I is a special sales tax, which is a form of tax.
III is an income tax imposed by a city, which is also a form of tax. 
Therefore, options I and III are correct. Option II is a fee, not a tax, and option IV is a special property assessment, which is not a tax but a fee for a specific improvement.

Which of the Following Is a Tax? I