The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for 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 these

Question

Quizplus · Accepted Answer

The surcharge on vacation cabin rentals is an example of an earmarked tax because the funds collected are designated for a specific purpose, in this case, funding the city's new elementary school.

The City of Granby, Colorado Recently Enacted a 1