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. 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: $\begin{array}{l}
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Mahre Sales }\
\begin{array}{lrrrr}
\underline{\text { State }} & \underline{\text { Goods }} & \underline{\text { Services }} & \underline{\text { Total }} \
\text{Alaska} & \$ 23,194 & \$ 0 & \$ 23,194 \
\text { Colorado } & 10,612 & 0 & 10,612 \
\text { Maine } & 35,913 & 156,084 & 191,997 \
\text { New Hampshire } & 26,721 & 325,327 & 352,048 \
\text { New York } & 65,431 & 0 & 65,431 \
\text { Vermont } & \underline{41,982} & \underline{277,441} & \underline{319,423} \
\text { Totals } & \$ 203,853 & \$ 758,852 & \$ 962,705
\end{array}
\end{array}$ Assume the following tax rates: Alaska (6.6 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?

Question

Quizplus · Accepted Answer

Mahre must collect and remit sales and use tax on the sales of goods and services in the states where it has a physical presence (Maine, New Hampshire, and Vermont). The total sales and use tax due is $10,386, calculated as follows:Maine: Sales of goods: $35,913 x 8.5% = $3,042Services: $156,084 x 8.5% = $13,267Total: $16,309New Hampshire: Sales of goods: $26,721 x 6.75% = $1,803Services: $325,327 x 6.75% = $21,948Total: $23,751Vermont: Sales of goods: $41,982 x 5% = $2,099Services: $277,441 x 5% = $13,872Total: $15,971Total sales and use tax due: $16,309 + $23,751 + $15,971 = $10,386

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