Which Statement About the Ability of Individual States to Collect

question 5

Multiple Choice

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

• A)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.
• B)A state cannot collect sales tax from merchants unless sales to the state's citizens amount to more than 1 million in the aggregate.
• C)A state can collect sales tax from a merchant only if the merchant has a store or distribution center in the state.
• D)Individual states may without restriction collect sales tax from merchants on items purchased through the Internet by in-state residents.
• E)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.