Final answer:
The statement is true; the colonists objected to the lack of representation in how taxes were applied, not the concept of taxation itself.
Step-by-step explanation:
The statement that the colonists did not necessarily object to the principle of taxation, but rather how the tax money would be applied, is true. During the period leading to the American Revolution, the colonists were particularly concerned with the British government imposing taxes on them without their consent, often summarized in the phrase 'no taxation without representation.' They believed that as subjects of the British crown, they should have a say in how the government levied taxes and how those funds were utilized.