The property taxes on a house that alan owns and rents out have increased. to balance his monthly budget, he decides to increase his tenants’ rent by $10 per month. he will use the extra money to pay his property tax. in this scenario, what type of tax do his tenants pay?

Indirect Tax

An Indirect Tax such as sales tax, property tax, values added tax or goods and services tax is the tax collected by an intermediary such as a retail store from the person who bares the ultimate economic burden of the tax such as the consumer. The intermediary later files the tax return and forwards the tax proceeds to the government with the tax return. An indirect tax may increase the price of a good to raise the price of the products for the consumers e.g. fuel, cigarette taxes.