Question

In the tax key numbering system, the division number refers to the tax division. Which of the following is true of the State of Hawaii tax divisions?

Option 1: They use a different numbering system.
Option 2: They don't have tax divisions.
Option 3: They follow the tax key numbering system.
Option 4: They are located on the mainland

Answer 1

The State of Hawaii follows the tax key numbering system, where the division number refers to a specific tax division for property taxation. The correct option is (3).

Step-by-step explanation:

Regarding the State of Hawaii tax divisions, they follow the tax key numbering system, which is a unique identifier for properties used for taxation in Hawaii. This tax key system, also known as the Tax Map Key (TMK) system, assigns a series of numbers to each property, indicating its location and other tax-related information.

In Hawaii, the division number within this sequence corresponds to a specific tax division, which is a part of the local governance structure responsible for assessing and collecting property taxes.

While each state's tax structure may vary, with some states choosing not to impose certain taxes like individual income taxes, they all implement a system to collect revenue for public services.

For example, states like Alaska and Hawaii rely less on fuel tax revenue, opting instead for other forms of taxation to fund state projects and services. Hawaii's use of the tax key numbering system is a reflection of how states adopt different approaches to taxation and revenue collection to support their specific public service needs.