The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________. 




A. A sin tax to discourage undesirable behavior

B. A government fine

C. An earmarked tax

D. Both a sin tax to discourage undesirable behavior and an earmarked tax

E. None of these




Answer: C


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