Respuesta :
The answer is b) false, tax on activities such as cigarettes and gambling is example of sin tax rather than severance tax.
Severance tax- is a state tax levied on the extraction of nonrenewable natural resources for consumption in other states. Crude oil, condensate and natural gas, coalbed methane, timber, uranium, and carbon dioxide are examples of natural resources. Severance tax is levied on resource producers or anyone with a working or royalty interest in oil, gas, or mineral operations in the states that levy it. The tax is calculated based on the value or volume of production, though states may use a combination of the two.
Sin Tax- It is levied on goods and services that are deemed harmful to society. Tobacco, gambling ventures, alcohol, cigarettes, and other products are examples of sin taxes. Sin taxes are intended to deter people from engaging in socially harmful activities. The goal is to make harmful products more expensive to obtain, thereby reducing or eliminating their consumption. They also generate revenue for governments.
Learn more about sin tax here:
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