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 for all of its customers.
D) States choose to implement either a sales tax or a use tax.

Question

Quizplus · Accepted Answer

Use taxes are imposed on the use, storage, or consumption of tangible personal property or certain services that were purchased without the payment of sales tax. Use taxes usually apply when the seller is not required to collect the sales tax, such as out-of-state purchases. Therefore, option B is the correct answer. Option A is incorrect because not every state imposes a use tax. Option C is incorrect because Amazon collects use taxes for customers who live in states that have implemented a use tax, but not for all customers. Option D is incorrect because most states implement both a sales tax and a use tax.

Which of the Items Is Correct Regarding a Use Tax