I recently registered for Alabama Simplified Sellers Use Tax.
Basically it's a flat 8% sales tax on all sales made into Alabama. No county, no municipal, no city. Just a flat rate 8% to the state.
So how do I override the settings properly in Shopify > Settings > Taxes > United States? On the override, there's an option called "Applies to all counties and cities" which is currently checked (alongside to "8%" on "Alabama (state)" field). If that's checked, does that mean it'll charge additional 8% to city/counties with the 8% state? Or does that mean all counties/cities will be 0% and 8% will be on the state?
On the override, I also see Montgomery (county) and (city) below Alabama (state). Should I check them, too and set the percentages to "0"? Or since "Applies to all counties and cities" checked, I don't need to bother messing with Montgomery (county) and (city) options?
I want to set up these sales tax the right way. I don't wanna mess it up, end up paying $$$ in fines and losing valuable time correcting the mistakes.
I had to setup an override for Illinois a while back for a similar "flat rate" and the way the settings are suppose to work is...
The Alabama (state) is set to 8%
Montgomery (county) is set to 0%
Montgomery (city) is set to 0%
The boxes to the left of the three items above are checked. Finally the "Applies to all counties and cities" is left unchecked.
After making these changes I suggest you initiate a test transaction (but it doesn't have to be submitted) in order to verify the rate that the tax is being calculated. If it does not calculate at 8% then contact support. I'm mentioning because at some point we had to get support involved. Hopefully your setup will run smoother.
Hope that helped.