What percentage of the manufacturer's invoice is applicable for installation when a dealer pays sales tax?

The correct answer is 75%. This percentage is based on industry standards and regulations regarding the taxation of manufactured homes. When a dealer purchases a manufactured home and is responsible for installation, the applicable sales tax is calculated based on a percentage of the manufacturer's invoice, not the total price inclusive of installation services.

In many jurisdictions, the reasoning for applying 75% reflects the understanding that while a portion of the manufacturer's invoice pertains to the home itself, not all of that amount is subject to sales tax when installation services are part of the transaction. This way, dealers can account for the costs associated with preparation and delivery without overburdening the tax calculations.

This percentage allows for a clear framework within which dealers can effectively manage their liabilities and ensure compliance with local tax regulations. Understanding this concept helps dealers navigate their financial responsibilities more effectively in the context of manufactured homes and the sales tax associated with them.