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.

Question

Quizplus · Accepted Answer

Use taxes are generally imposed by states when sales taxes are not collected by the seller at the point of sale, such as in the case of out-of-state purchases. Therefore, option B is correct. Option A is incorrect as not all states impose a use tax. Option C is incorrect as Amazon only collects sales taxes on behalf of its resellers, not use taxes. Option D is incorrect as states generally implement both a sales tax and a use tax, rather than choosing between the two.

Which of the Items Is Correct Regarding a Use Tax