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SALESTAX.TN

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SALESTAX.TN

 

Tennessee Sales Tax

===================

 

Here is an example of how to effect the 3-tier tax system of individual

items. In the below example state tax is 7%, the local tax up to $1,600

is 2.25% and the state surtax on items between $1,600 to $3,200 is

2.75%.

 

Change the rates below according to your local tax and when the state

rates change

 

$1-1600        (9.25% [7% state + 2.25% local])

$1601 to 3200  (9.75% [7% state + 2.75% state surtax])

$3200 and up   (7.0%  [7% state])

 

Go to "Store information defaults"

 

set the first tax at 9.250%

The second tax at positive 0.50%   OVER 1600

the third tax at negative 2.75%    OVER 3200

 

This has the effect of charging 9.25% tax on the full amount, then adding

0.50% (adding 2.75 and deducting 2.25) between after 1600 and removing

the 2.75% surtax over $3200

 

Set the tax words as you like - perhaps

 SALES TAX

 TAX LIMIT 1

 TAX LIMIT 2

 

Check each major code from the 8,3,1 Edit Major Codes screen to ensure

that all three of the sales taxes are activated for all taxable major codes

 

For an example - if you use the above formulas,

a $1000 item would be subject to sales tax of $ 92.50

a $2000 item would be subject to sales tax of $187.00

a $4000 item would be subject to sales tax of $360.00

 

Note that tax is calculated on each individual item on a sale.

It is NOT calculated on the total of a sales ticket. Therefore the

tax is not affected if you make one sales ticket with two $2500 items

totalling or two separate sales tickets of one $2500 item each.