Which of the items is correct regarding a use tax?
A) Amazon collects use taxes on behalf of all its resellers.
B) States choose to implement either a sales tax or a use tax but not both.
C) Use taxes only apply when the seller is not required to collect the sales tax.
D) Use taxes are imposed by every state.

Question

Quizplus · Accepted Answer

Use taxes are typically imposed only when the seller does not collect the corresponding sales tax. Therefore, a use tax is an additional tax that an individual pays when they purchase a taxable item outside of their state or jurisdiction and brings it into their home state for use.

Which of the Items Is Correct Regarding a Use Tax