Roxy Operates a Dress Shop in Arlington, Virginia

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 property. 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 and use tax liability?

A) $0.
B) $75 to Virginia.
C) $75 sales tax to Virginia and $15 use tax to Maryland.
D) $90 to MarylanD.Roxy would owe $75 to Virginia ($1,500 × 5 percent of sales tax) . Lisa, not Roxy, would owe another $15 ($90 ($1,500 × 6 percent) - $75) to Maryland.