Which of the Following Is a Tax? I

question 12

Multiple Choice

Which of the following is a tax? I.A 1% special sales tax for funding local road construction.
II) A fee paid to the state for a license to practice as an attorney.
III) An income tax imposed by Philadelphia on persons working within the city limits.
IV) A special property assessment for installing a new water system in the taxpayer's neighborhood.

• A)Only I is correct.
• B)Only IV is correct.
• C)Only III is correct.
• D)III and IV are correct.
• E)I and III are correct.

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Definitions:

Ownership Transferable

A characteristic of property rights or shares that allows them to be passed from one individual or entity to another.

Limited Liability Company

An enterprise structure that fuses the tax handling advantages of partnerships or sole proprietorships with the limited liability feature of corporations.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders. Corporations enjoy many of the rights and responsibilities that individuals possess.

Corporate Double Taxation

A tax principle where a corporation's income is taxed at both the corporate level and again as shareholder dividends at the personal level.