I'd really like to know how other apparel retailers in NY handle the $110 clothing tax exemption: http://www.tax.ny.gov/bus/st/sales_tax_clothing_exemption.htm
From what I've read, it looks like I don't need to collect the State Sales Tax, but I do need to collect the non-exempt County Sales Taxes. How in the world would you do this in Shopify?
Good afternoon Scott,
We now have a feature called tax overrides which is meant exactly for this sort of use. Here are the docs: http://docs.shopify.com/manual/settings/taxes/tax-overrides
The basic workflow is to pick which state the override applies to, create a collection with the items that the $110 exemption applies to and shopify will exclude tax on those items at checkout.
Thanks for the response, but I'm afraid that won't solve the problem. Correct me if I'm wrong, but I still need to collect county sales tax for shipments to all counties that didn't agree with the exemption. See here for more details: http://www.tax.ny.gov/pdf/publications/sales/pub718c.pdf This applies to all clothing sales in my store.
For example, if I sold a basket ball to someone in Albany county NY the tax would be:
4% State Sales Tax + 4% Albany County Sales Tax = 8% Overall Tax
However, if I sold a shirt to someone in Albany county NY the tax would be:
4% Albany County Sales Tax = 4% Overall Tax
Does that make sense? Would like to know your thoughts.
Hi Scott, at first I thought I was incorrect, but with a bit more setup it is possible with tax overrides.
Unfortunately it requires adding all states that are on the list of "Jurisdictions that did not provide for the local exemption" which should not impact tax calculation since NY charges tax based on your customer location vs your location.
By adding Albany as a state in the tax settings you can then drill down to add a tax override rule as required for clothing. Here is what I got http://monosnap.com/image/TyLBoLn2d9HQx81QnVZSjjXyoElhgb
When I check out to an Albany address I get 4 percent tax on clothing items as planned, does this work for your overrides also?
I'm not totally sure how the settings look, if you email me the store URL I can take a deeper look if I've missed anything.
You will need to add a zip to the Tax settings for each area, so to see Albany in the override I had to add a tax presence for "New York 12201" and after this I was able to specify rules for this county (ie charge 4 percent tax, or however it is set).
Each area on the jurisdictions list will need to be set up based on their ZIP code as a physical presence in Shopify first. In my screenshot I added only New York City and Albany, but you can specify as many as needed.
Thanks Massaad. The url is www.foreverfierce.myshopify.com. However, I think I understand now. It's a bummer I have to add each one in manually though. I would love to be able to select the counties from a list and edit the rates. Oh well, maybe one day.
Anyway, thanks for your help, you guys are great!
We have our tax overrides setup, but it's impossible to actually report on it and get the numbers we need to file. NY requires us to report on all sales in each taxable and non-taxable category. Currently Shopify, nor any app I've seen allow for reporting by collection. Furthermore, a simple order export is inadequate as the tax is only included as a total for the order. We need it by line item so we can separate out the non-taxed and taxed items in a particular order. Has anyone else successfully reported on NY taxes that include tax exempt items?