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?

Question

Quizplus · Accepted Answer

Roxy's sales tax liability is $75 to Virginia because the sale occurred in Virginia, where the dress was picked up. The sales tax is calculated as 5% of the $1,500 purchase price.

Roxy Operates a Dress Shop in Arlington, Virginia