Chapter 1, Problem 12P

Which of the following constitute a tax and why? l  Payment for driver’s license?    l  Payment for required (by government) house appraisal?    l  Payment for hotel use of 1% of bill to pay for city projects.    l  Payment for rental car use of 3% of bill to pay for the roads.

Choose the best answer from the four choices Assuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its governmental fund statements When the underlying sales transaction takes place On the date the merchant must remit the taxes to the government On the date the merchant must file a tax return When the taxes are received by the government Assuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its government‐wide statements When the underlying sales transaction takes place On the date the merchant must remit the taxes to the government On the date the merchant must file a tax return When the taxes are received by the government

Suppose a county has a classified property system where owner-occupied property is rated at 15%, farm property and undeveloped land at 10%, and all other property (including rental, commercial, and industrial) rated at 20%. a) What kind of incentives do individuals face when trying to reduce their tax burden? b) Why should it be difficult to compare tax burdens between this city and another city that does not have an unclassified system?   Please do not copy paste and explain your answers while answering this question. Other answers on the site about this question are wrong! Thanks!