State Taxation Authority and Constitutional Limits

In the 1930s and 1940s, many states started collecting which types of taxes to finance public services?

• Personal Income Tax and Sales Tax

• Corporate Income Tax and Real Property Tax

• Sales Tax and Corporate Income Tax

• Personal Income Tax and Real Property Tax

Which states have no state income tax according to the map?

• California

• Texas

• Florida

• New York

Fill in the blank: State income taxes are used to fund ______.

• Federal programs

• State governments

• Private companies

• International aid.

What is the diesel fuel tax rate in Virginia?

• 20.2 cents/gallon

• 30.0 cents/gallon

• 5%

• 2.5%

Fill in the blank: The merchant is responsible for collecting and submitting the sales tax to the ___.

• A) Federal government

• B) State

• C) Local council

• D) Consumers

If the sales tax rate in Virginia is 5%, what is the amount of sales tax on a purchase of $100?

• $5

• $10

• $15

• $20

What is the maximum local food and beverage tax percentage for cities?

• 4%

• 6.5%

• 10.5%

• 1%

Local taxes vary from city to city.

• True

• False

What is the purpose of local taxes according to the text?

• To reduce state taxes

• To increase federal taxes

• To add to state taxes

• To eliminate taxes

What is the maximum local food and beverage tax percentage for counties?

• 4%

• 6.5%

• 10.5%

• 1%