Quiz: Do you Know what the Internet Tax Freedom Act is?

Quiz: Do you Know what the Internet Tax Freedom Act is?
Image: Hemera/Thinkstock

About This Quiz

The Internet Tax Freedom Act, commonly referred to as ITFA, is a lucky tax break for those in the United States who like to surf the Web. Take this quiz to find out about the Internet Tax Freedom Act.
Why is the price on the price tag not necessarily the final price for an item?
because it's false advertising
because it's a mistake
because sales tax is often added
The price on the tag might not yet include a sales tax, which raises the price.

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What is the purpose of a sales tax?
to raise revenue for the government
The purpose is to raise funds for the government. Whenever you make a purchase, the government gets its cut.
to make you think twice about what you buy
to bring in more money for the retailer

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How much is the sales tax for Internet access?
zero
There's absolutely no sales tax on Internet access.
3 percent
5 percent

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What did the Internet Tax Freedom Act (ITFA) stipulate no tax should be charged for?
Internet use
ITFA made it a legal requirement that no taxes were to be charged for Internet use.
overseas purchases
purchases of more than $500

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In what year was Internet Tax Freedom Act (ITFA) enacted?
1995
1998
ITFA was enacted in 1998 after a year-long moratorium on Internet taxes.
2001

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When does a "grandfather clause" apply?
when a new law supersedes an old rule
when an old rule is superseded by a new law
when an old rule is not superseded by a new law
A grandfather clause applies when an old rule is not superseded by a new law.

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Which of these states were allowed to charge Internet tax because of an old rule prior to 1998?
Kansas and Florida
New Jersey and Washington
Ohio and Texas
Ohio and Texas and eight other U.S. states were entitled to continue charging an Internet tax.

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Which committee was appointed to monitor the effectiveness of the Internet Tax Freedom Act?
Advisory Commission of Electric Commerce
The Advisory Commission of Electric Commerce was charged with monitoring the effectiveness of ITFA.
Oversight Committee for Online Privacy and Security
Data Privacy and Integrity Advisory Committee

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What additional moratorium was put into effect regarding electronic commerce?
All electronic commerce transactions had to be reported at the end of every fiscal year.
Neither your state of residence nor the state where the item was being purchased could tax you.
It was a moratorium on "multiple and discriminatory taxes on electronic commerce" so that neither your state of residence nor the state of purchase could levy a tax.
The number of untaxed items you could buy was limited.

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When is the next scheduled discussion the Internet Tax Freedom Act?
Jan. 1, 2012
41379
Nov. 1, 2014
It's scheduled to be discussed again on Nov. 1, 2014. Until then, the matter is closed.

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You Got:
/10
Hemera/Thinkstock

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