How to start a business Test 3 Review 1

True/False: A seller's permit is the same as an occupational license

A sales tax is for the privilege of selling _______ at retail with a state

In most cases, who is responsible for paying sales tax?

Anyone who purchases items for resale or provides a taxable service must obtain a _________

Your seller's permit number is referred to as ________ in Florida:

States do or do not vary to some degree on the process and information required to obtain a Seller’s permit?

States vary by the calculation for sales tax resulting in varying amount based on

The actual percent sales tax may vary for different business items for resale but also due what is considered taxable sales and purchases may vary by _____ of a business

True/False: Department of Revenues are very aware of people applying for a Seller’s permit so they can purchase goods for personal use and not pay sales tax

A use tax normally applies to items purchased ____________ including another country, which are brought and delivered into this state and would have been taxed if purchased in Florida

The use tax rate is the same rate as the sales tax, which is:

Types of purchases subject to a use tax:

Items purchased and used in another state, territory of the USA, District of Columbia, for _________ or longer before bringing them into Florida are not subject to a Use tax

Out of state sales and in state use tax issues are the heart of:

Why the Issue? Our social, commercial, economic, and legal innovations in the last ____ years have made existing laws __________

(1992) the US Supreme Court decision stated that companies must maintain a physical presence in a state before it must collect sales tax

State they operate within the law since they do not have a physical presence in certain states. (Amazon v. State of NY 2008)

The decision also suggested that ______ was now free to decide whether when or what extent States may burden interstate mail order concerns with the duty to collect Use tax

Florida representative, Ms Michelle R Vasilanda had introduced the _________________

Her proposal meant collecting a sales tax on:

T/F: On May 2, 2009 her Legislation died in Economic Development Policy Committee

If an out of state seller fails to collect sales tax, it is ____ responsibility to comply with Florida law. ___ must submit payment directly to the Florida Department of Revenue

You purchase an item from an Internet company located in Wyoming. The Wyoming company charges you a lawfully imposed Wyoming sales tax of 4%. The item purchased is shipped to you at your Florida residence or business locations.

Florida counties may have a Sales Surtax ranging from ___ to ____ charged to merchants up to _____ dollars

Orange county has an additional Sales Surtax of

Each store and retail store __________ is taxable (some services may be taxable as well)

Exemptions include:

Sales Tax must be accounted for and paid by the _______

Common information includes when reporting sales tax:

Sales tax payments and returns are made ______, and must be postmarked by the _____ of the month

Late penalty is assessed at ___ percent of the amount of the tax owed per month, not to exceed 50

T/F: A minimum penalty is assessed on late returns, even if no tax is due

To apply for your sales and use tax certificate number you will need your ________

Your sales tax certificate number provides information on:

You should ask these questions when setting up a business bank account:

Free, interest bearing account, total business or analyzed business account

Business, Money Market, Certificate of Deposits CDS are part of a _____ account

Cash management includes:

Service charges, holding period for deposits, charges for returned checks, overdraft protection, ATMS, Notary are all part of a _____ account

What banking service reduces check costs?