Which of the following is a unit excise tax?
A)a tax of 15%
B)an admissions fee of $5.00 on each ticket purchased
C)an ad valorem tax of $3.00
D)an income tax of $3.00

Question

Quizplus · Accepted Answer

A unit excise tax is a tax that is levied on a specific quantity or unit of a product or service. An admissions fee of $5.00 on each ticket purchased is an example of a unit excise tax because it is a fixed tax applied to each ticket sold. Option A is not a unit excise tax because it is a percentage tax, not a fixed tax applied to a specific unit. Option C is an ad valorem tax, which is based on the value of the product, not a specific unit. Option D is an income tax, which is based on a person's income, not a specific unit or quantity of a product.

Which of the Following Is a Unit Excise Tax