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 property. 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 would owe $75 to Virginia ($1,500 × 5 percent of sales tax). Roxy does not have physical presence or sales tax nexus in Maryland. However, Lisa would owe use tax of $15 ($90 ($1,500 × 6 percent) - $75) in Maryland.

Roxy Operates a Dress Shop in Arlington, Virginia