California Sales Taxes incorrectly computed

[CharlesMJr]

In the payment Test mode, I have performed several test transactions.  In one local delivery sale, the amount of state sales tax that was charged is 1 cent too much.  I have not had this problem in other tests.  I plan to do more testing to see if this continues to occur but was wondering if others have experienced the same problem. 

Copy of order showing incorrect tax computation

Sales Tax Set-up screens

[SNB24]

Yes, I am using Shopify Tax and this is happening to my sales as well. My local sales tax rate is 10% and on a $15 sale, Shopify Tax adds $1.51 sales tax.

It's because Shopify Tax doesn't add 10% sales tax. It adds individually a 6% CA State Tax,  a .25% LA County Tax, a .5% Torrance City Tax, a 2.25% LA County District Tax, and a 1% LA County Local Tax, and it rounds up each of those individual components of the 10% sales tax and it ends up adding a penny tax overcharge on a $15 sale, a 2 cent tax overcharge on a $30 sale, etc. 

I had an exchange with Shopify and their response is "We have carefully investigated the behavior of the sales tax in the specific orders you mentioned. We found that Shopify calculates sales tax with high precision and rounds to the nearest cent when the tax is half a cent or more. This is done to ensure accuracy in tax calculations."

So even though it's wrong, it doesn't sound like they are going to change it.

[SNB24]

My local sales tax rate (Torrance) is 10% and on a $15 sale, Shopify Tax adds $1.51 sales tax. 

It's because Shopify Tax doesn't add 10% sales tax. It adds individually a 6% CA State Tax, a .25% LA County Tax, a .5% Torrance City Tax, a 2.25% LA County District Tax, and a 1% LA County Local Tax, and it rounds up each of those individual components of the 10% sales tax, and then adds them together, and it ends up adding a penny tax overcharge on many sales.

 

Shopify doesn't recognize it as a mistake. Yikes!