How to start a business Test 3 Review 1

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Test 3 Review 1

  • 1
    True/False: A seller's permit is the same as an occupational license
  • 2
    A sales tax is for the privilege of selling _______ at retail with a state
  • 3
    In most cases, who is responsible for paying sales tax?

  • 4
    Anyone who purchases items for resale or provides a taxable service must obtain a _________
  • 5
    Your seller's permit number is referred to as ________ in Florida:
  • 6
    States do or do not vary to some degree on the process and information required to obtain a Seller’s permit?

  • 7
    States vary by the calculation for sales tax resulting in varying amount based on
  • 8
    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
  • 9
    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
  • 10
    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

  • 11
    The use tax rate is the same rate as the sales tax, which is:
  • 12
    Types of purchases subject to a use tax:
  • 13
    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
  • 14
    Out of state sales and in state use tax issues are the heart of:
  • 15
    Why the Issue? Our social, commercial, economic, and legal innovations in the last ____ years have made existing laws __________
  • 16
    (1992) the US Supreme Court decision stated that companies must maintain a physical presence in a state before it must collect sales tax

  • 17
    State they operate within the law since they do not have a physical presence in certain states. (Amazon v. State of NY 2008)
  • 18
    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
  • 19
    Florida representative, Ms Michelle R Vasilanda had introduced the _________________
  • 20
    Her proposal meant collecting a sales tax on:

  • 21
    T/F: On May 2, 2009 her Legislation died in Economic Development Policy Committee
  • 22
    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
  • 23
    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.
  • 24
    Florida counties may have a Sales Surtax ranging from ___ to ____ charged to merchants up to _____ dollars
  • 25
    Orange county has an additional Sales Surtax of
  • 26
    Each store and retail store __________ is taxable (some services may be taxable as well)

  • 27
    Exemptions include:
  • 28
    Sales Tax must be accounted for and paid by the _______
  • 29
    Common information includes when reporting sales tax:
  • 30
    Sales tax payments and returns are made ______, and must be postmarked by the _____ of the month

  • 31
    Late penalty is assessed at ___ percent of the amount of the tax owed per month, not to exceed 50
  • 32
    T/F: A minimum penalty is assessed on late returns, even if no tax is due
  • 33
    To apply for your sales and use tax certificate number you will need your ________
  • 34
    Your sales tax certificate number provides information on:
  • 35
    You should ask these questions when setting up a business bank account:
  • 36
    Free, interest bearing account, total business or analyzed business account
  • 37
    Business, Money Market, Certificate of Deposits CDS are part of a _____ account
  • 38
    Cash management includes:
  • 39
    Service charges, holding period for deposits, charges for returned checks, overdraft protection, ATMS, Notary are all part of a _____ account
  • 40
    What banking service reduces check costs?

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