Which Statement About the Ability of Individual States to Collect

question 16

Multiple Choice

Which statement about the ability of individual states to collect sales tax on Internet transactions is true?

• A) Individual states may, without restriction, collect sales tax from merchants on items purchased through the Internet by in-state residents.
• B) Only with permission of Congress, granted on a state-by-state basis, may individual states collect from merchants sales tax on items purchased through the Internet by in-state residents.
• C) States cannot collect sales tax on Internet sales from merchants nor may a state require that its citizens report Internet purchases so that they may be taxed.
• D) A state cannot collect sales tax from merchants unless sales to the state's citizens amount to more than 1 million in the aggregate.
• E) A state can collect sales tax from a merchant only if the merchant has a store or distribution center in the state.

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