Which of the following is true regarding state and local taxes?
A) All states impose a state income tax.
B) Every jurisdiction imposes a sales or use tax.
C) The primary purpose is to raise revenue.
D)Property taxes are primarily used to finance a State's general revenue fund.

Question

Quizplus · Accepted Answer

The primary purpose of state and local taxes is to raise revenue for government operations and services, such as public education, infrastructure, and public safety.

Option A is incorrect because seven states in the U.S. do not impose a state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

Option B is incorrect because five states do not have a sales or use tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

Option D is incorrect because property taxes are primarily used to finance local government operations, such as schools, roads, and emergency services, rather than a State's general revenue fund.

Which of the Following Is True Regarding State and Local