calculating tax

[azrac]

Hi,

my store is selling clothes and accessories and it is based in MA. State tax is collected if the buyer is from MA, for the items that are more than $175 in value.
How do I set this up?

Also some accessories are taxable..

[Jim]

The tax by zip method would be a good option since it allows tax based on the zip codes that are within the particular state and other zipcodes are not taxed. Another option would be the Avatax method which can handle any state specific tax cases. There is a cost for the Avatax method.

Is the tax only if an individual item is more than $175 or if the total of items is more than $175?

If it is just on a single item that is more than $175, then just mark the items costing that much, or any taxable accessories, as taxable on the Products > Edit Product Info screen in the Product information section, Taxable: field.

[azrac]

I selected to calculate the tax based on the zip code ( and I have entered the MA zip code)... but the tax amount shows $0.

It is only for an item that is more than $175. Yes, all my items are selected to be taxable.

thank you.

[Jim]

When you enable tax by zip you need to check the box in front of the state to say to use that tax setting. You also need to enter the tax rate as a percent. And depending on the Version of ShopSite you have, you need to select the country(ies) that you charge tax to.

[azrac]

That works fine and charges 6.25% sales tax for all the MA residents. But how do I charge tax for items that are more than $175 in value?

" in Massachusetts there is no sales tax on any article of clothing unless the sales price is $175 or more. In that case, the tax is only charged on the increment more than $175. "

How do I charge tax in this case?
Thank you.

[Jim]

Simple, you know the price of the article of clothing when you create or modify the product for it. If the price is more than $175 check the box that says the item is taxable. If the product is selling for less than $175 uncheck the taxable box.

[azrac]

I understand.. but the thing is that lets say item is $300.
Well, the tax shouldn't be calculated on $300, but on 300-175= $125
Because first $175 are tax free, everything after that is not.

Thanks.

[Jim]

If that is the case then one option would be to use a tax service such as Avatax that keeps track of all the laws for a particular state and will charge the tax according to a code that is assigned to the item. See the ShopSite help at http://shopsite.com/help/11.2/en-US/sc/pro/sales.tax.ava.html or their website at http://www.avalara.com/e-commerce/shopsite

Another option in a Pro level store would be to write your own tax calculation module that would be called by ShopSite at checkout. See http://shopsite.com/help/11.2/en-US/sc/pro/sales.tax.api.html and the specification at http://shopsite.com/help/11.2/en-US/sc/pro/sales.tax.api.spec.html

[azrac]

Thank you.