Which of the following is true about limitation on state taxation?
A) Taxes imposed by federal government are subject to the limitations imposed by the commerce clause.
B) Sales or use taxes levied by state and local governments on interstate commerce are exempt from the limitations.
C) Taxation distributes the cost of government among those who receive its benefits.
D) The limitations do not apply to property tax and income tax.
E) Interstate commerce is exempt from state and local taxes.

Question

Quizplus · Accepted Answer

Since taxation distributes the cost of government among those who receive its benefits, interstate commerce is not exempt from state and local taxes. The purpose of the commerce clause is to ensure that a taxpayer engaged in interstate commerce pays only its fair share of state taxes.

Which of the Following Is True About Limitation on State