NYC Sales Tax Calculation Delay

mlg83
Tourist
7 0 2

Be warned, this one is going to be a bit long.

 

I have a brick & mortar store in New York City in which I sell apparel and non-apparel goods. I use Shopify POS with a 3rd-party credit card terminal and Shopify for my webstore.

 

For those who don't know, NYC sales tax law/code is that certain items (usually apparel, footwear, etc.) are not subject to sales tax if the item is $109.99 or less. So if a sneaker is purchased in-store at regular price of $120 it would have 8.875% tax added. But if the customer had a coupon that made that sneaker $100, the sales tax would not be added. Shopify has a way for merchants like myself to execute this, we make sure every item that falls in these product categories is added to a special collection called "tax:clothing". If this wasn't a thing, I would have never switched over to Shopify years ago in the first place.

 

Now, in the old shopify (pre April 2022), this process operated smoothly in the POS. I scan an item and instantly it knows whether to add the tax or not based on how much that item is. And thus, I announce to my customer the correct total for all of their item(s). All is right in the world.

 

But ever since the big update (I think from 6 to 7) last year, the sales tax is shown for a varying amount of time and then either taken away or kept depending on the collection that item is in (as previously described). The time it takes to fix can be anywhere between milliseconds to a handful of seconds. I've uploaded a video showing an example.

 

I immediately contacted Shopify support about this issue last year when I first saw it happen. I wanted to go back to the old POS app version. They said this wasn't possible but they would have the technical team investigate it.

 

That was a year ago... A YEAR! In that time I have contacted Shopify support countless times to check up and remind them this issue persists despite the numerous updates they have rolled out. I always update my app in hopes it is finally remedied... it never is. I purchased a new iPad a few months ago thinking that might help... nope.

 

There is more to this but I will end it here for the sake of time and sanity. But I will conclude with this. Am I the only one out there with this issue??? I feel like my store might be special in this regard because how could Shopify not get this fixed immediately? They roll out new features and updates but neglect a serious legal issue like this. I could only fathom this being the case if I was a single store with this problem.

Replies 4 (4)

iccagus
Excursionist
17 1 1

Hi @mlg83 

 

So, please correct me if I'm wrong but...

 

Your concern is the "split second" it takes to reload the price. You want to get rid of it and have the correct price shown instantly.

 

Is that it? Or there's something else to it, that I'm missing?

mlg83
Tourist
7 0 2

It's not always a "split second," if that were the case it wouldn't be as big of a deal. But an important issue nonetheless. The bigger the order the more time it tends to take. This issue has resulted in our store collecting sales tax on items that should not be. That's a major problem.

 

More recently we had a day where our internet was down for a bit. This resulted in the sales tax not being deducted at all.

 

What boggles my mind is that this used to not happen ever. It was only when they updated in April 2022 when this started.

mlg83
Tourist
7 0 2

Just a follow-up. It is July 11, 2023 and this issue has still not been resolved nor has Shopify been in contact with me about it. I yesterday had a POS order where the tax was not taken off at all and I had to manually remove the three lines of tax.

mlg83
Tourist
7 0 2

Checking in again to report this issue has still not been resolved and has gotten even worse. Now sometimes the tax calculated on an item that is supposed to come off does not come off at all. I have to manually do it on the POS iPad.