1) A customer comes into your home improvement store to purchase a new lawn mower. The customer tells you that he is exempt from paying sales tax because he is buying the lawn mower for a tax-exempt organization. As the retailer, you can trust the customer's word. You are NOT required to verify that the customer's sales tax license or exemption certificate is current and valid at the time of sale.

True False

2)

FACT: If purchased property is delivered to the purchaser at a location in Colorado, the retailer must collect all state and state-administered local sales taxes applicable to the point of delivery.

SCENARIO: A customer buys a sofa at a furniture showroom located in Fort Collins at 215 N Mason St, Fort Collins, CO 80524, and has it delivered by the furniture store to their vacation home at 848 Spring Hill Road, Steamboat Springs, CO 80487. Which sales tax rates should be charged on the sofa?

Select ALL sales tax rates that apply to this sale.

Question 5 options:

A)	Steamboat Springs 4.500%
B)	State of Colorado 2.90%
C)	Fort Collins 3.85%
D)	Larimer County 0.80%
E)	Routt County 1.000%

3)

SCENARIO #1: A customer purchases a new car for $25,000 and makes a cash down payment of $5,000.

SCENARIO #2: A customer receives a trade-in allowance on their old car of $5,000. The new car they are purchasing costs $25,000.

QUESTION: What is the taxable purchase price of the new car in each scenario?

Question 1 options:

	The taxable price in SCENARIO #1 is $25,000 and SCENARIO #2 is $25,000.
	The taxable price in SCENARIO #1 is $20,000 and SCENARIO #2 is $25,000.
	The taxable price in SCENARIO #1 is $25,000 and SCENARIO #2 is $20,000.
	The taxable price in SCENARIO #1 is $20,000 and SCENARIO #2 is $20,000.

4)

In the following invoice, Your Uniform Co. charged Jump to Health Fitness Center $177.50 for pants and shirts to be used as uniforms for employees at the fitness center. Sales tax of $13.40 was charged on the items. Did Your Uniform Co. charge the correct amount of sales tax? Assume the date is for the current year.

	No. Because the seller and buyer are both located in the city of Fort Collins, the seller is not required to charge the city sales tax rate of 3.85%. The sales tax rate should have been 3.7% which is equal to the the CO state rate of 2.9% + Larimer County rate of 0.8%.
	Yes. A rate of 7.55% was charged on the invoice which equals the CO state rate of 2.9% + Larimer County rate of 0.8% + Fort Collins City rate of 3.85%.
	Yes. A rate of 3.7% was charged on the invoice which equals the CO state rate of 2.9% + Larimer County rate of 0.8%.
	No. Your Uniform Co. should not have charged any sales tax to Jump to Health Fitness Center because the purchase was for uniforms to be used for business purposes.