Question

Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a measurement and purchases a $1,500 dress. Lisa returns to Virginia a few weeks later to pick up the dress and drive it back to her Maryland residence, where she will use the dress.

Assuming that Virginia's sales tax rate is 5 percent and that Maryland's sales tax rate is 6 percent, what is Roxy's sales tax liability?

Answer 1

$75

Step-by-step explanation:

Data provided in the question:

Cost of the dress purchased = $1,500

Virginia's Sales tax rate = 5 percent

Maryland's sales tax rate = 6 percent

Now,

Roxy's sales tax liability

= Virginia's sales tax rate × Cost of the dress purchased

or

Roxy's sales tax liability = 5% × $1,500

or

Roxy's sales tax liability = $75