The city of Granby, Colorado, recently enacted a 1.5 percent surcharge on vacation cabin rentals that will fund the city's new elementary school. This surcharge is an example of _____.
A)a sin tax to discourage undesirable behavior
B)a government fine
C)an earmarked tax
D)a sin tax to discourage undesirable behavior and an earmarked tax
E)None of the choices are correct

Question

Quizplus · Accepted Answer

The surcharge is specifically earmarked to fund the new elementary school, meaning it is a form of earmarked tax. It is not a sin tax, as there is no mention of the surcharge being intended to discourage undesirable behavior. It is also not a government fine, as vacation cabin renters are not being penalized for any wrongdoing.

The City of Granby, Colorado, Recently Enacted a 1