Mahre,Incorporated,a New York corporation,runs ski tours in several states.Mahre also has a New York retail store and an Internet store,which ships to out-of-state customers.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: Assume the following sales tax rates: Alaska (0 percent),Colorado (7.75 percent),Maine (8.5 percent),New Hampshire (6.75 percent),New York (8 percent),and Vermont (5 percent).How much sales and use tax must Mahre collect and remit in Maine?

Question

Mahre,Incorporated,a New York corporation,runs ski tours in several states.Mahre also has a New York retail store and an Internet store,which ships to out-of-state customers.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:  Assume the following sales tax rates: Alaska (0 percent),Colorado (7.75 percent),Maine (8.5 percent),New Hampshire (6.75 percent),New York (8 percent),and Vermont (5 percent).How much sales and use tax must Mahre collect and remit in Maine?

Quizplus · Accepted Answer

Mahre must collect and remit sales tax in states where it has a physical presence, such as Maine, where it has employees and owns tangible personal property. The sales subject to Maine's sales tax are those made to customers located in Maine. According to the given sales breakdown, the sales made to Maine customers are $35,980. Applying Maine's sales tax rate of 8.5 percent, Mahre must collect and remit $3,053 in sales tax. Therefore, the correct answer is B.

Mahre,Incorporated,a New York Corporation,runs Ski Tours in Several States