State And Local Taxes

This question bank verified by Studydeets

Questions Bank

Business Income,Deductions,and Accounting Methods
Property Acquisition and Cost Recovery
Property Dispositions
Entities Overview
Corporate Operations
Accounting for Income Taxes
Corporate Taxation: Nonliquidating Distributions
Corporate Formation,Neorganization,and Liquidation
Forming and Operating Partnerships
Dispositions of Partnership Interests and Partnership Distributions
S Corporations
State and Local Taxes
The Ustaxation of Multinational Transactions
Transfer Taxes and Wealth Planning

All Questions

Question 1

Free

True/False

The primary purpose of state and local taxes is to raise revenue to finance state and local government.

Choose correct answer/s

True

False

Check answer

Question 2

Free

True/False

All states employ some combination of sales and use tax,income or franchise tax,or property tax to fund their government operations.

Choose correct answer/s

True

False

Check answer

Question 3

Free

True/False

State tax law is comprised solely of legislative authority.

Choose correct answer/s

True

False

Check answer

Question 4

Free

True/False

Commercial domicile is the location where a business is headquartered and from whence it directs its operations.

Choose correct answer/s

True

False

Check answer

Question 5

Free

True/False

Nondomiciliary businesses are subject to tax everywhere they do business.

Choose correct answer/s

True

False

Check answer

Question 6

True/False

Use tax liability accrues in the state where purchased property will be used when the seller of the property is not required to collect sales tax.

Choose correct answer/s

True

False

To unlock the question

Question 7

True/False

Businesses engaged in interstate commerce are subject to income tax in every state in which they operate.

Choose correct answer/s

True

False

To unlock the question

Question 8

True/False

The state tax base is computed by making adjustments to federal taxable income.

Choose correct answer/s

True

False

To unlock the question

Question 9

True/False

Businesses subject to income tax in more than one jurisdiction have the right to apportionment.

Choose correct answer/s

True

False

To unlock the question

Question 10

True/False

Business income is allocated to the state of commercial domicile.

Choose correct answer/s

True

False

To unlock the question

Question 11

True/False

All 50 states impose a sales and use tax system.

Choose correct answer/s

True

False

To unlock the question

Question 12

True/False

Purchases of inventory for resale are typically exempt from sales and use taxes.

Choose correct answer/s

True

False

To unlock the question

Question 13

True/False

The sales and use tax base varies from state to state.

Choose correct answer/s

True

False

To unlock the question

Question 14

True/False

Many states are either starting to or are in the process of expanding the types of services subject to sales tax.

Choose correct answer/s

True

False

To unlock the question

Question 15

True/False

Businesses must collect sales tax only in states where it has sales and use tax nexus.

Choose correct answer/s

True

False

To unlock the question

Question 16

True/False

Failure to collect and remit sales taxes by a seller often results in a larger tax liability than failure to pay income taxes.

Choose correct answer/s

True

False

To unlock the question

Question 17

True/False

Physical presence does not always create sales and use tax nexus.

Choose correct answer/s

True

False

To unlock the question

Question 18

True/False

The National Bellas Hess decision held that an out-of-state mail-order company did not have sales tax collection responsibility because it lacked physical presence.

Choose correct answer/s

True

False

To unlock the question

Question 19

True/False

The Quill decision reaffirmed that out-of-state businesses must have physical presence within a state before the state may require the collection of sales taxes from in-state customers.

Choose correct answer/s

True

False

To unlock the question

Question 20

True/False

Wyoming imposes an income tax on corporations.

Choose correct answer/s

True

False

To unlock the question