Tax Rate Tables

You should define a tax rate table if any of your publications are subject to sales tax. You link tax rate tables to a publication on the publication definition general tab (click here for details on the 'Tax rate table' field in the publication definition). In most cases, you'll define just one sales tax table for all publications.

How you define the entries in your tax rate tables depends on the complexity of your sales tax requirements.

Example 1

Let's take the simplest case first.  Your office is located in a state that charges sales tax on all types of periodicals.  The sales tax rate is based on the county or city that your office is located in and applies to all subscribers in your state.  In this case you should define a single sales tax table with one entry: the Code column contains your state code and the Rate column contains the sales tax percentage. After you have created the tax table go to the publication definition screen for each of your publications and link the tax table to each one.  When you enter a new subscriber QuickFill will prefill the tax jurisdiction field on the address screen with the two character state code.  Only those customers that are located in your state will have a match in the tax rate table and will get charged sales tax.

Example 2

Now suppose that you sell both books and periodicals, but only the books are taxed.  Follow the steps in Example 1 but only link the tax table to the books.  The periodicals will not be linked to any sales tax table and subscribers to those publications will not be taxed.

Example 3

Your state charges sales tax based not on the location of your office, but on the location of the subscriber. Most of the state has a 7.0% tax rate, but the cities of Gotham and Metropolis tack on an extra tax, resulting in rates of 7.5% and 8.0%.  Create a single sales tax table with three rows.  The first row contains the two character state code with a tax rate of 7.0%.  The second row should contain a three character code of your choice (say GOT for Gotham) and a tax rate of 7.5%.  The third row contains a code of MET for Metropolis and a tax rate of 8.0%.  When you enter a new subscriber QuickFill will prefill the tax jurisdiction field on the address screen with the two character state code.  For subscribers in Gotham and Metropolis you must remember to change this code to GOT or MET.

Example 4

More and more of the cities in your state are establishing their own unique tax rates and you now have a dozen different three character codes defined in your tax table.  It has become burdensome to remember to fill in these codes when entering new subscribers. Retain your Tax Rate table as in Example 3, but create a new Tax Jurisdiction table in which you specify the zip code ranges that belong to the cities that have a unique tax rate.  Use the same three character codes that you have been using in the Jurisdiction column of this table.  Put the names of the cities in the description column.  Add additional rows to the table to cover all of the remaining zip codes in the state, assigning them to the default two character state code, and putting the state name in the description column.  Now when you enter a subscriber QuickFill will lookup their zip code in the Tax Jurisdiction table and automatically fill in the proper two or three character code.

Example 5

You have a presence or "nexus" in more than one state and must charge sales tax to subscribers located in large number of jurisdictions at many different tax rates.  This is really the same as Example 4 except that your Tax Jurisdiction table will now expand to include the zip code ranges for all of your taxable jurisdictions.  In an extreme situation you may be forced to use three character jurisdiction codes that are not representative of any particular city or county, but simply identify a particular tax rate.   So your tax rate table may have codes of 700 for 7.00%, 710 for 7.10% and so on.  In the Tax jurisdiction table you specify the zip code ranges and names of each taxable jurisdiction and link them to the three character rate codes in Tax Rate table.

Tax table description

Enter a descriptive label for your table—for example, "MA and NY."

Code

If you are not using a tax jurisdictions table, enter the state's U.S. Post Office two-character abbreviation or the Canadian province code.

If a city, county, or other tax jurisdiction within a state has a different tax rate from that of the state, enter that rate separately by using a three-character code to distinguish it from the state code. For example, New York City has a higher tax rate than New York State. So enter the code "NY" for the state and make up a separate code, such as "NYC," for the city. (The tax rate for NYC should be the sum of the rates for the city and state tax.)

If you are using a tax jurisdictions table, enter each of the jurisdiction codes or rate codes that are in your tax jurisdictions table. For example, for the 5% sales tax rate mentioned above, you would make one entry with "500" in the 'Code' field and "5.000" in the 'Rate (%)' field.

Rate

Enter the tax rate for each state for which you collect sales tax in the state's corresponding 'Rate' field. As a rule, you'll have to enter rates for only those states where you have business or sales offices.

Import button

The "Import" button provides the ability to import a tax rate  table from a comma delimited or tab delimited text file (QuickFill automatically determines which delimiter is being used.) This makes it convenient to define or maintain a jurisdictions table in another program, such as Excel or Access. If you use Excel, make sure you format the tax rate column as text, not as a percentage; if you use the percentage format a 7% tax rate will be imported as 0.07 instead of 7.00.

The field order in the import file must be the same as the field order on the screen (that is code followed by rate.)

The tax rate table is treated as a whole. Therefore, when you import a table, it replaces all previously defined entries. The data is not validated and stored in the database until you click on "OK." If you make changes and then click on "Cancel" you will lose your changes. If you import data and it looks wrong because your import file has the field order wrong, you can click on "Cancel" to avoid saving the imported data.

 

See Also