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Quiz: How does your State Collect Sales Tax?
by Staff
Sales tax is used by most states in America to generate revenue for their budgets. Compare state sales tax with other types of taxes through this quiz.

How many U.S. states charge sales tax?

  • 1900-02-08 23:00:00
  • 1900-02-13 23:00:00
  • 1900-02-18 23:00:00

A sales tax on consumer goods is classified as _________.

  • consumption tax
  • income tax
  • severance tax

Which type of consumption tax is popular in other countries?

  • commerce tax
  • tariff
  • value added tax

How does a state collect sales tax?

  • The consumer sends it directly to the state.
  • The retailer sends it directly to the state.
  • The state comes to collect it from the consumer.

How did the Great Depression influence sales tax in the U.S.?

  • Economic hardship led states to institute sales tax.
  • Economic hardship led states to repeal their sales tax.
  • Economic hardship led states to increase their sales tax.

Which Southern state instituted the first state sales tax?

  • Alabama
  • Kentucky
  • South Carolina

Which West Coast state has the highest state sales tax?

  • Oregon
  • Washington
  • California

The suspension of sales tax for a specified period of time is called what?

  • tax credit
  • tax holiday
  • tax break

Who benefits from sales tax holidays?

  • consumers
  • retailers
  • both of the above

Which group suffers most from paying sales tax?

  • poor
  • rich
  • employed

Which of the following exemptions lessen the sales tax burden?

  • food
  • prescription drugs
  • both of the above

________ sales tax laws can be difficult and confusing for retailers doing business in more than one state.

  • Conflicting
  • Revised
  • Repealed

What is it called when businesses pass off the cost of the taxes they pay through the goods and services it sells to consumers?

  • double taxation
  • unfair taxation
  • supply taxation

Which of the following are services that might be taxed to raise state revenue?

  • cable TV
  • legal services
  • both of the above

How has the Internet affected state sales tax collection?

  • States are collecting more sales tax.
  • States are collecting less sales tax.
  • States are collecting no sales tax.