Question

Which statements about sales taxes are true? Check all that apply.

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

Answer 1

True:
- They are collected by state and local governments.
- The tax rate changes from state to state and city to city.
- The more something costs, the greater the dollar amount paid in sales tax.
- Sales taxes are taxes on purchased goods.

False:
- Failure to pay sales tax can result in the government seizing the property. (Governments can impose penalties, interest, liens or other enforcement for unpaid taxes, and in extreme cases seize assets to collect taxes, but seizure is not the typical immediate consequence of failing to pay a routine sales tax at purchase.)