How to Set Up Sales Tax Settings for Alabama Simplified Sellers Use Tax

[Mkco13907]

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.

Thanks!

[tax_pro]

Hi Mkco13907,

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.

[Janaraeryan]

Hello!

I am new and getting my Shopify site set up.  I live in Fairhope AL and have been advised that if:

I ship out of AL, I collect no tax

I ship in AL but out of the county I live in, I collect 4% for the state 

I ship in AL and in my County, I collect 7%--4%state and 3%county

finally, if I ship in the city I live in, I have to collect 9%--4%state, 3% county & 2%city

I cannot find anyway to set this up w the system provided. Wondering how you are managing? THX!!!

[tax_pro]

Hi Janaraeryan,

If you'd like to call me I can explain your options. They're not perfect but will protect you from a future liability with the state while also keeping you from paying some of the sales tax out of your own pocket. Anyway I can explain further if you want to call me

Regards,


Jerry Pennington

The Sales Tax Team

2002 Timberloch Place, Suite 200

The Woodlands, TX 77380

713-858-0085 (Direct)

281-298-2771 (Fax)

www.thesalestaxteam.com

[heidihelena]

Hi, I am in Mobile across the bay from you. Trying to set up my tax. Did you get this figured?

[tax_pro]

Hi heidihelena,

If you'd like to call me I can explain the setup.