Question

Mahre, Incorporated, a New York corporation, runs ski tours in a several states. Mahre also has a New York retail store and an Internet store, which ships to out-of-state customers. Assume sales transactions in all states, except New York, are under 200 and that all states have adopted Wayfair legislation. The ski tours operate in Maine, New Hampshire, and Vermont, where Mahre has employees and owns and uses tangible personal property. Mahre has real property only in New York. Mahre has the following sales: Mahre Sales State Goods Services Total Alaska $ 23,214 $ 0 $ 23,214 Colorado 10,632 0 10,632 Maine 35,983 156,154 192,137 New Hampshire 26,801 325,557 352,358 New York 65,521 0 65,521 Vermont 42,062 277,631 319,693 Totals $ 204,213 $ 759,342 $ 963,555 Assume the following sales tax rates: Alaska (0 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (0 percent), New York (8 percent), and Vermont (5 percent). How much sales and use tax must Mahre collect and remit

Answer 1

Answer: $11,228.31

Step-by-step explanation:

Given the following data :

Sales data:

State - - - - - Goods - - - - - Service - - - - - Total

Alaska - - - $23,214 - - - - - - 0 - - - - - - - $23,214

Colorado - $10,632 - - - - - - 0 - - - - - - - $10,632

Maine - - - $35,983 - - - $156,154 - - - - $192,137

N/Hampshire $26,801 - - 325,557 - - - 352,358

New York - - - $65,521 - - - - 0 - - - - - - - 65,521

Vermont - - - - $42,062 - - $277,631 - - -$319,693

Totals - - - - - $204,213 - -$759,342 - -$963,555

The amount of sales tax Mahre should collect and remit :

Sum of (goods sold * sales and use tax) in each state

ALASKA:

Sales tax rate = 0%

Sales and use tax = 0

COLORADO:

Sales tax rate = 7.75%

Sales and use tax = (0.0775×$10632) = $823.98

MAINE:

Sales tax rate = 8.5%

Sales and use tax = (0.085×$35983) = $3059.55

New Hampshire:

Sales tax rate = 0%

Sales and use tax = (0×$26801) = $0

New york:

Sales tax rate = 8%

Sales and use tax = (0.08×$65521) =$5,241.68

Vermont :

Sales tax rate = 5%

Sales and use tax = (0.05×$42062) =$2103. 1

Total sum:

(0+$823.98+$3059.55+0+$5241.68+$2103.1)

= $11,228.31