Creating Tax Exemption Statuses at Jurisdiction Levels

Generally, if a customer has a tax exemption certificate, they will be tax exempt for all tax rates at all jurisdiction levels within a particular state. However, some states, such as Colorado and Louisiana, allow customers to be exempt at specific jurisdiction levels. For example, a customer could be exempt from state tax, but not for local or city taxes. Use this procedure to define tax exemption statuses at specific levels of jurisdictions.

To create tax exemption statuses at the jurisdiction level:

  1. From the Files menu, select Customer to display the Customer Maintenance screen.

  2. Display the customer's record.

  3. Use the Tax # hot key to display the Sales Tax screen.

  4. Use the Jurisdiction Exemptions hot key to display the Jurisdiction Exemptions screen.

Note: This hot key displays only if you have the National Sales Tax companion product. For more information, see National Sales Database Tax Overview.

  1. Move the cursor to one of the following jurisdictions that you want to create a tax exemption for:

  2. State

  3. County

  4. City

  5. County Local

  6. City Local

  1. In the Taxable column, enter a Y or N to indicate the exemption status of that jurisdiction. For example, if the user is exempt from state taxes, enter a Y. The default for all jurisdictions is N.

The following occurs:

First, the system checks for exemptions in the following order of jurisdictions:

If more than one exemption is found, the system uses the first occurrence of an exemption. If no exemption is found, there will be no exemption on the order.

Second, the selected exemption number displays on the Header screen in Sales Order Entry in the Tax Exempt ID # field.

If the exemption does not apply to all jurisdiction levels, an asterisk (*) displays next to the field to indicate that this is only a partial exemption. Clearing out the Tax Exempt ID # field removes all exemptions from the order. Changing the value in the field makes the order completely tax exempt. For more information, see Sales Order Entry.

  1. When you are finished making adding jurisdiction exemptions, press Esc to return to the Sales Tax screen.

See Also:

Sales Tax Jurisdiction Codes Overview

Sales Tax Overview

Assigning Tax Jurisdiction Overrides to Customers