The City of Granby, Colorado Recently Enacted a 1

question 3

Multiple Choice

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

• A) A sin tax to discourage undesirable behavior
• B) A government fine
• C) An earmarked tax
• D) Both a sin tax to discourage undesirable behavior and an earmarked tax
• E) None of these

---

Definitions:

Fixed Assets

Fixed assets, also known as non-current assets, are long-term physical assets used in the operations of a business.

Taxable Income

The portion of an individual's or corporation's income used as a basis for calculating the amount of income tax owed to the government.

Tax Rates

The ratio of private or corporate earnings that is annexed by governmental agencies as tax.

Net Working Capital

The variance between a firm's immediate assets and immediate obligations, showcasing the near-term fiscal well-being and procedural effectiveness of the business.