A California resident purchases a computer from an out-of-state Internet retailer. The Internet retailer does not charge California sales tax. The California resident must pay ______ on the computer's value. Use tax Income tax Personal property tax A and C
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Until 2012, California, Pennsylvania, and Texas required firms to collect sales taxes for online sales if the chain had a physical presence (a "brick" store as opposed to a "click" store) in those states. Thus, those states collected taxes on Best Buy's online sales because it had stores in each of those states, but they did not collect taxes from Amazon.com because it did not have physical locations in those states. In states in which Amazon had to collect sales taxes, Amazon purchases fell 8% (Baugh, Ben-David, and Park, 2015) and Best Buy sales increased by 7.1%.
Akash M.
Which of the items is correct regarding a use tax? Use taxes are imposed by every state. Use taxes only apply when the seller is not required to collect the sales tax. Amazon collects use taxes for all of its customers. States choose to implement either a sales tax or a use tax.
Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes into a home improvement store in the state capital of Sacramento and buys a leaf blower that is priced at $$ 200 .$ With the 10 percent sales tax, his total comes to $$ 220 .$ How much of the $$ 220$ paid by Ralph will be counted in the national income and product accounts as private income (employee compensation, rents, interest, proprietor's income, and corporate profits)? a. $$ 220$ b. S200. c. $$ 180$ d. None of the above.
Md.Daniyal A.
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