Reginald Corporation, a seller of tangible personal property, islocated exclusively in State X where its headquarters is located.It has customers located all over the country. It purchases itsmerchandise for sale from third party manufacturers, who ship theproduct directly to Reginaldâs customers. Reginald has numerouscustomers in State Y. It contracts with Maker Corporation, amanufacturer, to ship the product to Reginaldâs customers in StateY. Reginald bills the customers for the retail price of themerchandise and purchases the merchandise from Maker, paying it thewholesale price. Maker ships the product direct to the Y statecustomers of Reginald from its location in State Y.
If State Y has a statute that imposes a sales and use tax solelyon âretail sales to end users in the state,â which one of thefollowing statements is most accurate?
A. Reginald is responsible to collect State Y use tax from its YState customers.
B. Reginald is responsible to pay State Y sales tax on itspurchases from Maker.
C. Maker is responsible to charge State Y sales tax to the StateY customers
D. State Y customers are responsible to self assess and pay usetax to State Y
If State Y has a statute that imposes a sales and use tax onâretail sales to end users in the state including delivery in thisstate by an owner or former owner if the retailer is not engaged inbusiness in this state,â which one of the following statements ismost accurate?
A. Reginald as an owner of the property is responsible forcollecting use tax from its Y Statecustomers.
B. Maker as a former owner of the property is responsible forcharging and collecting use tax fromReginaldâs customers.
C. Y State customers are responsible for self assessing the usetax on the retail price of the product purchasedfrom Reginald.
D. Maker as a former owner of the property is responsible forcharging and collecting use tax fromReginaldâs Y State customers only if title passes outside StateY.
If State Y has the statute indicated in question 24, and Makerdoes not have a manufacturing location in State Y, but does have apart time salesman in the state, which one of the followingstatements is most accurate?
A. Maker has a responsibility to collect use tax from the YState customers of Reginald if theshipping terms to the Y State customers are âFOB shippingpoint.â
B. Maker has a responsibility to collect use tax from the YState customers of Reginald if the shipping terms to the Y Statecustomers are âFOB destination.â
C. Maker has a responsibility to collect use taxes from the YState customers of Reginald regardless of the shipping terms.
D. Reginald has the responsibility to pay sales tax on thewholesale price billing from Maker.
Reginald Corporation, a seller of tangible personal property, islocated exclusively in State X where its headquarters is located.It has customers located all over the country. It purchases itsmerchandise for sale from third party manufacturers, who ship theproduct directly to Reginaldâs customers. Reginald has numerouscustomers in State Y. It contracts with Maker Corporation, amanufacturer, to ship the product to Reginaldâs customers in StateY. Reginald bills the customers for the retail price of themerchandise and purchases the merchandise from Maker, paying it thewholesale price. Maker ships the product direct to the Y statecustomers of Reginald from its location in State Y.
If State Y has a statute that imposes a sales and use tax solelyon âretail sales to end users in the state,â which one of thefollowing statements is most accurate?
A. Reginald is responsible to collect State Y use tax from its YState customers.
B. Reginald is responsible to pay State Y sales tax on itspurchases from Maker.
C. Maker is responsible to charge State Y sales tax to the StateY customers
D. State Y customers are responsible to self assess and pay usetax to State Y
If State Y has a statute that imposes a sales and use tax onâretail sales to end users in the state including delivery in thisstate by an owner or former owner if the retailer is not engaged inbusiness in this state,â which one of the following statements ismost accurate?
A. Reginald as an owner of the property is responsible forcollecting use tax from its Y Statecustomers.
B. Maker as a former owner of the property is responsible forcharging and collecting use tax fromReginaldâs customers.
C. Y State customers are responsible for self assessing the usetax on the retail price of the product purchasedfrom Reginald.
D. Maker as a former owner of the property is responsible forcharging and collecting use tax fromReginaldâs Y State customers only if title passes outside StateY.
If State Y has the statute indicated in question 24, and Makerdoes not have a manufacturing location in State Y, but does have apart time salesman in the state, which one of the followingstatements is most accurate?
A. Maker has a responsibility to collect use tax from the YState customers of Reginald if theshipping terms to the Y State customers are âFOB shippingpoint.â
B. Maker has a responsibility to collect use tax from the YState customers of Reginald if the shipping terms to the Y Statecustomers are âFOB destination.â
C. Maker has a responsibility to collect use taxes from the YState customers of Reginald regardless of the shipping terms.
D. Reginald has the responsibility to pay sales tax on thewholesale price billing from Maker.
