Which of the following is true regarding use taxes?
A) A use tax is relatively easy to enforce compared to a sales tax.
B) Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.
C) Use taxes encourage taxpayers to buy goods out of state to avoid paying sales tax in their home state.
D) A use tax is generally a progressive tax.
E) None of these is true.

Question

Quizplus · Accepted Answer

Use taxes are intended to eliminate any tax advantage of purchasing goods out of state by requiring individuals to pay a tax on those goods when they are brought into their home state. This prevents individuals from avoiding sales taxes by purchasing goods from states that do not have sales taxes or have lower sales taxes.

Which of the Following Is True Regarding Use Taxes