In Colorado the seller only collects CITY taxes for the County where they live/business located - otherwise it should just be County and State Sales Tax.
For some reason, Shopify thinks it needs to collect city tax from some of the counties in Colorado where I sell but am not located. How do I fix this?
I am having the same issue in New Mexico. We only have one location the county, but they want to charge the city tax. I have also noticed that the billing from shopify also includes the city tax. I was told that because our address has a city in it, that is why we are being charged the city tax even though you are not in the city. For a e-commerce provider that say the host 1.7M site, they are sure lacking in this issue.
No, there is not a solution for this issue yet. Shopify wants to charge your customers the wrong sale tax, but also charges you the wrongs sales tax for their service. They are not the only ones doing this. QuickBooks, Amazon, and others charge the wrong sales tax as well. A lot of the companies that advertise to help with the sales tax Nexus, like Avalara, also have in their systems wrong sales tax. I did a test of our address, we are in the county, and every company I check out said that we should be charging the City tax. Even though the USPS, State of New Mexico, and The city of Carlsbad itself says that our address is in the county and must charge county tax. Some say that they go by what the state say, address, or zip code. That is all BS. It seems no one cares about this as long as they get their money. They do not care about small businesses or customers. If they did there would be a working system in place before saying that we must be collecting these taxes.
You can get mad at Shopify for this and the run around their support state give you, but they are more in likely getting the tax rates from another company saying that this is the rate.
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