How is net sales calculated?

Sales tax on the purchase of a vehicle is calculated on the net purchase price?

• (which is the total purchase price minus the amount allowed by a dealer for any trade-in). The rate of tax for residents in Denver, CO is as follows: •Colorado state tax: 2.90% •Regional transportation district (RTD) tax: 1.20% •Denver city tax: 3.62% Using the information above, answer the following: •What is the total sales tax to be paid in 2002 on the purchase of a 2002 passenger vehicle with a sales price of $17,000 and a $2,000 trade-in allowance? •How would the sales tax be distributed between the state, the RTD, and the city?

• Answer:

  What's so hard? This is 5th grade math! Convert the percentages to a decimal and multiply. If you forgot how to do that, just move the decimal 2 places to the left. 4.6% becomes .046. Now that you have the knowledge of how to do it, I'll leave the number crunching up to you.