Use Tax is paid by a consumer for storing, distributing, consuming, or using tangible personal property or taxable services. In the city of Fort Collins, use tax is due when a municipal tax of at least 3.85% is not paid at the time of purchase. (The Use Tax rate is 3.85% in Fort Collins except for certain manufacturing equipment.)

SCENARIO: Your business is located in Fort Collins, and you purchase a computer from a retailer in Westminster and pay Westminster city tax. Do you owe any Use Tax to the City of Fort Collins?

Question  options:

	No, you do not owe any Use Tax because the computer was purchased to be used in the business.
	No, the Westminster City tax rate is 3.85% (the same rate as Fort Collins), so you already paid a municipal tax of at least 3.85% and do not owe any tax to the City of Fort Collins.
	Yes, you must pay Use Tax to the City of Fort Collins for the difference between the Westminster and Fort Collins city tax rates.
	Yes, you paid Westminster city tax but you must pay Use Tax to the City of Fort Collins of 3.85%.

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?

Options:

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

FACT: If the 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. Any delivery location is referred to as a "non-physical site" by the Colorado Department of Revenue.

SCENARIO: A customer buys a sofa at a furniture showroom located in Fort Collins at 215 N Mason St, Fort Collins, CO 80524, and takes it home in their own vehicle to their home at 1421 Kendall Drive, Boulder, CO 80305. Which sales tax rates should be charged on the sofa?

Select ALL sales tax rates that apply to this sale.

HINT: You must look up the sales tax rates on the Colorado Department of Revenue site as instructed in the video.

Question 3 options:

A)	Larimer County 0.80%
B)	Scientific and Cultural Facilities District (CD) 0.10%
C)	Fort Collins 3.85%
D)	State of Colorado 2.90%
E)	Boulder County 0.985%
F)	Regional Transportation District (RTD) 1.00%
G)	Boulder 3.86%

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer 1 No the Westminster City tax ra... View the full answer