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