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Passenger car rental occurs in new york city (8.875% rate), an mctd locality, what tax rate applies?

a.8.875%
b.13.875% (rate plus 5%)
c.14.875% (rate plus 6%)
d.18.875% (rate plus 10%)
e.19.875% (rate plus 11%)
f.20.875% (rate plus 12%)
g.22.875% (rate plus 14%)

1 Answer

2 votes

Final answer:

The question deals with the calculation of the total tax rate for passenger car rental in an MCTD locality like New York City. Without specific data on additional car rental surcharges, we cannot accurately determine which of the provided tax rates applies, though general sales tax is known to be 8.875%. Answer is not clear.

Step-by-step explanation:

The subject of the question is the application of tax rates to passenger car rental in New York City, which is a part of an MCTD (Metropolitan Commuter Transportation District) locality. One must consider the base tax rate of 8.875% and add any additional surcharges or taxes that apply specifically to car rentals in that area.

However, due to a lack of given data about specific car rental taxes or surcharges, we cannot determine the accurate total tax rate from the options provided.

It's common for cities or localities to add specific surcharges to car rentals. In New York City, there is indeed a tax rate for general sales, which is 8.875%, but for passenger car rentals, there may be additional fees and surcharges. If these surcharges total up to 5%, then the total would be 13.875%. However, without the specific additional percentages that apply to car rentals, we cannot confirm if the correct answer is option (b) 13.875% or any other provided option.

User Michael Dz
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