Sales tax at city level incorrect

Sara R. shared this question ago

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My sales tax settings are set so that they will auto-calculate based on the event location which is the correct way to calculate sales tax in my area. However, I tried a few different addresses and the sales tax is not calculating the city level sales tax rates, only the county and state levels.

We serve multiple cities ranging in total sales tax collections of 5% to 9%. I know I could set an override to capture at the highest rate, but that's not technically legal and I don't want to be issuing sales tax refunds all the time.

Has anyone else figured out how to get the sales tax to calculate correctly?

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Comments (3)

Jen H. ● 8 months ago

Here is an article on sales tax

https://rental.software/support/knowledge-base/article/automatic-sales-tax-calculation

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Sara R. ● 8 months ago

Hi Jen, thank you, I did review that link and I understand that it states it should be calculating at the city level, but it's not accurate.

Here's an address as a test and it's only calculating 3.7% and that is correct for the state and county, but it's not adding the city tax rate which is an additional 4.38%.

I also tried it with a different address in another city and the same issue happens. It calculates to 3.7% which is correct, but does not add the city rate.

I attached screenshots showing the comparison.

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Casey Z. ● 8 months ago

If it helps, I just tested this address in my account and I also got 3.7%. My Washington sales taxes also have state, city, and other local jurisdictions, and those calculate correctly. I'm guessing this is a problem with Tax Cloud, or whatever service IO is using to calculate sales taxes.

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Sara R. ● 8 months ago

Interesting, thanks for your feedback.

I tried another address which is in a different county than me (tested this on the same lead entry, just changed the address) and it did ask if I wanted to update the tax to 8.5%, but that's still incorrect for that particular address.

Included additional screenshots for Support to review

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Sara R. ● 8 months ago

All seems to be working now. I tried a few other addresses and then the original and it worked this time around.

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Cameron K. ● 8 months ago

Awesome! Let us know if you need any more assistance with this!

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Casey Z. ● 8 months ago

That's really weird. The Lochmore address in Fort Collins still give me a 3.7% tax rate. Doesn't matter as I will never deliver there. Interesting though that you are now getting the correct amount.

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