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

Question

Quizplus · Accepted Answer

Mahre has nexus (a physical presence) in Maine because it has employees and tangible personal property in the state, and is therefore required to collect and remit sales tax on sales made in Maine. Mahre's sales of goods in Maine were $35,913, and the sales tax rate is 8.5 percent, so the amount of sales tax due is 0.085 x $35,913 = $3,052.81, which rounds up to $3,053.

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