Tax Classification Quiz

• Direct tax is a fixed amount while indirect tax is determined by the value of the property being taxed
• Direct tax is demanded from persons who are intended or bound by law to pay the tax while indirect tax can be shifted to another (correct)
• Direct tax is imposed on property while indirect tax is imposed on individuals
• Direct tax is paid by someone other than the taxpayer while indirect tax is paid by the taxpayer

• Specific tax is a percentage of the value of the property being taxed while ad valorem tax is a fixed amount
• Specific tax is a fixed amount while ad valorem tax is imposed based on a physical unit of measurement (correct)
• Specific tax is imposed on property while ad valorem tax is imposed on individuals
• Specific tax is determined by an independent appraiser while ad valorem tax is not

• General taxes are indirect while special taxes are direct
• General taxes have a specific purpose while special taxes are raised for whatever need may arise (correct)
• General taxes are imposed by municipal governments while special taxes are imposed by the national government
• General taxes are graduated while special taxes are not