New York has started asking races to pay sales tax on store items like extra shirts and jackets that are sold as part of a race (this does not include taxing registration or the typical free shirt that comes as part of the registration). The sales tax calculation is quite complicated – a different rate for each county, and a different amount whether it is clothing under $110. To help our customers, and anticipating expanded taxing of races in the future, we have built a Sales Tax system.
RunSignUp allows you to define multiple “Jurisdictions”. This might be a state, a county or a city – really you can name it anything. You have the ability to let a customer chose their own jurisdiction, and/or for the system to automatically select it based on the zipcode.
As shown in the top image on this page, a Tax table shows what Jurisdictions pay what sales tax rates. Sales tax can be a combination of State, County and Local. This will feed the reports so that a race can know how much is owed to each level. The runner sees just a total tax and not this detail.
Note that a default tax can be applied to customers outside of the defined jurisdiction. For example, runners from outside your state may owe no taxes.
Note also that you can set multiple tax tables. For example a clothing item under $110 is taxed at a lower rate than shipping for example. Therefore you would set up two tables.
Note also that you can set up two jurisdictions with the same zipcode and allow the user to pick which one they are in. For example, 13030 is split between Onondoga and Madison counties in New York. (Yes, this is very slick!)
Now that you have your jurisdictions defined and the tax tables done, you can now determine which items get taxed, and which tax table they should use. Again, using the New York State example, the clothing under $110 uses a lower tax table than shipping. And Registration would not be taxed at all.
Almost all types of transactions can be taxed with the exception of Corporate Team Invoices because of the custom nature of those.
Sales tax is automatically calculated at checkout as shown on the right. Note a recalculation is done when a coupon is added (or taken away).
We give you a summary report as well as the ability to download full details.
You can also do manual adjustments (both positive and negative). This is useful for adding tax for paper entries for example.
When issuing refunds, you can also chose to issue tax refunds as well. This is the amount of the refunded amount that should be subtracted from the tax reports. This is for your reporting purposes only. The value will not affect the amount actually refunded to the registrant.
Here is a video overview:
2 thoughts on “Sales Tax”