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Discussion Question 1-16 Avoiding Sales Tax Through Use of Out-of-State Purchase

ID: 2349863 • Letter: D

Question

Discussion Question 1-16 Avoiding Sales Tax Through Use of Out-of-State Purchase (LO. 4) Eileen, a resident of Wyoming, goes to Montana to purchase her new automobile. She does this because Wyoming imposes a sales tax, while Montana does not. Indicate whether the statements are true or false regarding whether Eileen has avoided the Wyoming sales tax? Eileen may have avoided the Wyoming sales tax, but she will be subject to the Montana use tax. SelectTrueFalse Eileen may have avoided the Wyoming sales tax, but she will be subject to the Wyoming use tax. SelectTrueFalse

Explanation / Answer

Avoiding Sales Tax Through Use of Out-of-State Purchase (LO. 4) Eileen, a resident of Wyoming, goes to Montana to purchase her new automobile. She does this because Wyoming imposes a sales tax, while Montana does not. I

[ndicate whether the statements are true or false regarding whether Eileen has avoided the Wyoming sales tax?

Eileen may have avoided the Wyoming sales tax, but she will be subject to the Montana use tax. TruE