Chapter 1

Question 1

Define Incidence

Answer 1

Who bears the burden of a tax

Question 2

Define Jurisdiction

Answer 2

Right to levy a tax

Question 3

Citizens who are residents of another country

Answer 3

The US still has jurisdiction

Question 4

Permanent Residents

Answer 4

Foreign citizen, US residents
- US has jurisdiction

Question 5

Nonresident Aliens

Answer 5

Foreign citizen/resident who makes money from the US
- US has jurisdiction

Question 6

Ad valorem taxes

Answer 6

Real property and personal property taxes

Question 7

Real property aka “realty”

Answer 7

Land and anything erected/growing on the land or permanently affixed to it.

Question 8

Realty taxes

Answer 8

Levied annually based on the market value of the property, determined by tax assessors.

Question 9

Personal property “personalty”

Answer 9

An asset that’s not realty

Question 10

Sales Tax

Answer 10

Based on retail price on tangible personalty

Question 11

Use tax

Answer 11

Taxes ownership, possession, or consumption of tangible goods within a state
- only if owner didn’t pay the state’s sales tax at purchase

Question 12

Excise Tax

Answer 12

Imposed on retail sale of specific goods like gas, cigarettes, alcohol, etc.