3
QuizMultiple Choice

Paying Taxes — Quiz

Question 3 • Personal Finance

Which statements about sales taxes are true? Choose four correct answers.

Answer
A
Sales taxes are taxes on purchased goods.
B
The more something costs, the greater the dollar amount paid in sales tax.
C
Failure to pay sales tax can result in the government seizing the property.
D
They are collected by state and local governments
E
The tax rate changes from state to state and city to city.

Explanation

Sales tax is charged on many goods when they are purchased, so A is true. If the tax rate stays the same, a more expensive item results in a larger dollar amount of sales tax, making B true. State and local governments collect sales taxes, and rates can differ between states and cities, so D and E are true. Seizing property is not the usual consequence of a shopper failing to pay sales tax at purchase, so C is not correct.

AI-written and checked against the verified answer.

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