Which of the Following Statements About the Collection of Sales

question 7

Multiple Choice

Which of the following statements about the collection of sales taxes on Internet and online purchases is NOT correct?

• A) States can only require companies that have a physical presence in a state to pay sales tax.
• B) Federal requirements on state sales tax have caused many states to lose urgently needed tax revenue.
• C) States are vigorously lobbying for changes to federal law so that they can collect taxes on Internet and online purchases.
• D) If an Internet vendor is not required to collect sales tax on a purchase, the purchaser is exempt from paying any sales tax.
• E) As the volume of Internet sales continues to increase, the amount of state sales tax revenue decreases.

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