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 is only required to collect and remit sales tax in states where it has a physical presence, which includes employees and tangible personal property. Since Mahre operates ski tours in Maine and owns tangible personal property there, it must collect and remit sales tax on its Maine sales. The total amount of sales in Maine is $37,100. Therefore, the sales tax Mahre must collect and remit in Maine is $3,053 (8.5% of $37,100). Mahre is not required to collect and remit sales tax on sales made in states where it does not have a physical presence, such as Alaska, Colorado, New Hampshire, and Vermont.

Mahre, Incorporated, a New York Corporation, Runs Ski Tours in Several