In an effort to recapture part of the tax base that escapes to the suburbs in the evenings, some cities have imposed local payroll or other types of ________ to obtain revenue from people who work in the central cities and make frequent use of city facilities yet live in the suburbs.
A)sales taxes
B)commuter taxes
C)personal income taxes
D)tariffs
E)fines

Question

Quizplus · Accepted Answer

Commuter taxes are specifically designed to target people who work in a city but live in the suburbs, and are used by some cities as a way to capture tax revenue from these individuals who utilize city facilities and services during the day but do not pay property taxes to the city. Sales taxes and tariffs are not specifically targeted towards commuters, while personal income taxes would apply to all residents regardless of where they work. Fines are a form of punishment for breaking laws or regulations, and are not a revenue-raising mechanism.

In an Effort to Recapture Part of the Tax Base