Compared to Other States, Which Statement Regarding Revenue Sources for the State

question 55

Multiple Choice

Compared to other states, which statement regarding revenue sources for the state of Texas is true?

• A) Texas has low sales tax and low income tax.
• B) Texas has no income tax and low sales tax.
• C) Texas has high income tax and high sales tax.
• D) Texas has no sales but high property tax.
• E) Texas has no income tax but high sales tax.

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Definitions:

A Lease

A contractual agreement where one party (the lessor) allows another party (the lessee) to use an asset in exchange for payment over a specified period.

Gross Lease

A lease in which the monthly payment made by the tenant remains the same and the landlord pays the operating expenses of the building.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding cost of goods sold.

Leasehold Improvements

Alterations or enhancements made to a leased space by or for a tenant, usually to suit the specific needs of that tenant, which typically become the property of the landlord at the end of the lease term.