City, county sales tax in addition to state sales tax - wayfair act, economic nexus????

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New Member
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Why does Shopify force a zip code when setting up another state where you have sales that exceed their "economic nexus" treshholds?  Now we are not only collecting and paying 5% state sales tax, but also the 2%+ city sales tax and the .5% county sales tax.  

 

Shouldn't we be able to enter a state and comply with the state mandate without having to enter a specific zip code and be subject to the city and county taxes? 

 

Frank and Buck

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Tourist
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Hi Frank and Buck, 

 

Shopify's current sales tax features are rather limited for non-Plus accounts. Unfortunately, the only thing you can do is either set a zip code, or use a flat rate for the entire states. Alternatively, you can upgrade to Shopify Plus which includes an Avatax account. 

 

Though I would question your assumption that you only have to collect the state rate. You generally will also need to collect the local taxes as well. An exception to this would be Colorado, however. 

 

Hope this helps! 

 

- Alex from TaxValet

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