Indirect Tax Terminology
_____ is defined as a tax paid to a governing body on
sales of goods or services.
Sales Tax
Which states have some form of real property tax, which can be defined as land and all things affixed to it (buildings)?
All States
Does the United States utilize a Value-Added Tax System?
No
Is sales tax an ad-valorem tax?
No
What is an excise tax?
A tax imposed on a specific good or activity.
______is defined as a tax paid to a governing body on the use of goods or services.
Use Tax
Property taxes are the primary source of funding for which state and local government entities?
- School districts
- Cities/towns
- Counties
- Road/bridge
- Police/fire
What is the difference between a Value Added Tax and a Goods and Services Tax?
VAT - applied to Tangible goods.
GST - applied to Tangible goods and Services.
What is the sales tax rate in Texas?
8.25%
Name 3 items that commonly have excise taxes imposed on them.
Alcohol
Tobacco
Gasoline
_____ is a type of consumption tax that is placed on a
product whenever value is added at a stage of production and at a final sale.
Value Added Tax ("VAT")
Property Tax is an "ad valorem" tax,
meaning that the tax is based on the ___________ of the property
Fair Market Value
Do the majority of countries have a VAT, sales tax, or GST system?
VAT - Value Added Tax System
Name the 5 NOMAD states. (States with no form of sales tax)
- New Hampshire
- Oregon
- Montana
- Alaska
- Delaware
Do excise taxes usually increase prices for consumers directly or indirectly?
Indirectly
______ is a value added tax imposed on goods and
services.
Goods and Services Tax
Typically, the fair value of the property is
determined by the __________.
Local Assessor's Office.
Who collects Value Added Taxes and who collects Sales taxes?
The Business
What should never be higher than Sales Tax?
Use Tax
Why are some excise taxes referred to as “sin taxes”?
The items subject to this tax are perceived to be either morally suspect, harmful, or costly to society.
______ is a system where the recipient of the goods or services is liable to pay the tax, rather than the supplier.
Reverse Charge Mechanism
Which states require property of
certain industries to be centrally assessed,
meaning that the state sets the value?
- Delaware
- Hawaii
- Illinois
- Iowa
- New York
- Ohio
- Pennsylvania
At what stage of the supply chain are the Value-added taxes levied at?
Every Stage
This concept refers to the obligation of a business to collect and remit tax in a jurisdiction based on its economic activity, even without a physical presence.
Economic Nexus
What is the per gallon federal excise tax rate on gasoline?
18.4 cents