Which of the following statements is true about the taxing powers of the federal government?
A) The U.S. Congress can levy different taxes on different states.
B) The Internet Tax Freedom Act permanently banned taxes on the Internet.
C) States are only allowed to require a business to submit sales tax payments if the business has a store or distribution center in the state.
D) The government charges lower taxes to discourage the development of certain industries.

Question

Quizplus · Accepted Answer

This statement is true. The Supreme Court has ruled that a state can require a business to collect and remit sales tax only if the business has a physical presence in the state, such as a store or distribution center. This is known as the "physical presence" test.

Which of the Following Statements Is True About the Taxing