Roxy Operates a Dress Shop in Arlington, Virginia

question 30

Multiple Choice

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 collection obligation?

• A)$0
• B)$75 to Virginia
• C)$75 sales tax to Virginia and $15 use tax to Maryland
• D)$90 to Maryland

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Definitions:

Hypoid Gearsets

Hypoid Gearsets are used in the differential of vehicles, characterized by gears that engage at angles to each other, which allows for smoother and quieter operation than traditional gear systems.

MIL L 2105D

This refers to a military specification for lubricants, oils, and greases used in mechanical systems.

API GL-5

A classification for gear lubricants defined by the American Petroleum Institute, indicating suitability for high-speed, shock-load, and high-torque applications.

API GL-3

Designates a classification of gear lubricants by the American Petroleum Institute for moderate conditions, often used in non-hypoid axles and transmissions not subject to extreme pressures.