Final answer:
A use tax is imposed by most states and not by the Federal government and is used by states to generate revenue for funding state activities.
Step-by-step explanation:
A use tax is imposed by a majority of the states and not the Federal government. State governments in the U.S. are more likely to raise revenue through sales taxes and fees for certain government services. Sales taxes are imposed by most states on the retail sale price of many goods and some services. Sales tax rates also vary widely among jurisdictions and may vary within a jurisdiction based on the particular goods or services taxed. Income tax may be imposed by the federal, state, or local government. Tax rates vary by location, and often by income level.
A use tax is a type of tax that is similar to a sales tax, but it is levied on goods that are purchased outside of one's state of residence for use within the state. This tax is imposed to even the playing field between in-state and out-of-state retailers, preventing people from avoiding state sales tax by purchasing goods elsewhere.
The correct answer to the question about who imposes a use tax is: b. Most of the states and not the Federal government. A use tax is typically imposed by state governments and not the federal government. The rates and rules for use taxes vary by state, and they are important for providing revenue that funds state activities and services.