We have our first California order shipping to zip code 94070. We have nexus in California and system is set for physical presence. However, the order did not calculate for 2% county tax. It only charged for 7.25% state tax.
How is system doing this wrong?
For reference, here is our physical description in the tax table:
Your Zip 90210
State tax 7.25%
County, municipal and other taxes 0.0% to 3.25%
When I searched for 94070 it returns:
Tax Policy: Tax Shipping & Handling
I created an order in our test Shopify system that has the tax setups to duplicate the issue and received the same result.
Shopify is not collecting 2% taxes for 94070.
When I change the test order shipping zip code to 90210, it now correctly calculates 2.25% for Los Angeles county. Checking back I change shipping zip to 90620 (Buena Park) and it does NOT calculate county.
So, how are we supposed to tell Shopify to calculate taxes for all counties in California, not just Los Angeles county?
We have economic nexus status in California, I.E. we have requirement to collect tax at all levels (state, county, city and special) in all areas of the state regardless of physical presence. The Shopify system does not account for this.
I contacted Shopify support directly. Here is what they concluded:
“So I was able to confirm with my tech team, and the only options currently are to add each zip code as a physical presence manually, or they might be able to enable the system to charge tax everywhere in the US, which would not be good if you are not registered to charge tax in all those regions.
The economic nexus development is something our merchants have voiced concerns over and we are actively tracking, so hopefully there is a better option coming but I can't say for sure."
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