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Kai operates the Surf Shop in Laie, Hawaii, which designs, manufactures, and customizes surfboards. Hawaii has a hypothetical 4 percent excise tax rate, technically paid
Kai operates the Surf Shop in Laie, Hawaii, which designs, manufactures, and customizes surfboards. Hawaii has a hypothetical percent excise tax rate, technically paid by the seller. However, the state also allows "tax on tax" to be charged, which effectively means a customer is billed percent of the sales price.
Determine the sales tax the Surf Shop must collect and remitor the use tax liability the customer must payfor each of the following orders:
Note: Leave no answer blank. Enter zero if applicable. Round your intermediate computations and final answers to the nearest whole dollar amount. Note that Hawaii and Nebraska doesn't tax services.
Required:
a Kalani, a Utah customer, places an Internet order for a $ board that will be shipped to Provo, Utah, where the local sales tax rate is percent.
b Nick, an Alabama resident, comes to the retail shop on vacation and has a $ custom board made. Nick uses the board on vacation and then has the Surf Shop ship it to Tuscaloosa, Alabama, where the sales tax rate is percent.
c Jim, a Michigan resident, places an order for a $ custom board at the end of his vacation. Upon completion, the board will be shipped to Ann Arbor, Michigan, where the sales tax rate is percent.
d Scott, a Nebraska resident, sends his current surfboard to the Surf Shop for a custom paint job. The customization services come to $ The board is shipped to Lincoln, Nebraska, where the sales tax rate is percent.
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