Setting Up > Tax Jurisdictions > Tax Exceptions and 2-Tiered Tax Rates

RetailEdge also supports tax exceptions and 2-tier tax rates. Tax exceptions and 2-tier tax rates can be used for jurisdictions that:

1.	Have different tax rates for different items, or

2.	Have different tax rates depending on the price of an item (luxury taxes).

For instance, some jurisdictions have a no taxes on clothing until the price of an item reaches $175.00. Then, they only tax the portion of the amount over $175.00 ($25.00 on a $200.00 item).

To set this up in RetailEdge:

1.	Choose Tax Jurisdictions from the Tools menu item.

2.	Press the Add button on the Tax Jurisdiction List.

3.	Type in a Jurisdiction Name and Base Rate (say 5.0%).

4.	Choose a department Exception Type from the dropdown box.

5.	Press the Add button.

6.	On the Add Department Exception screen select the Clothing department from the drop down box.

7.	Type in a 0% for this exception.

8.	Check Enable 2-Tier Tax Rates.

9.	Type in $175.00 Item Price Exemption Limit.

10.	Type in the Rate on Amount >= Item Price (say 5.0%).

11.	Choose Calculate Tax Rate on Amount Over Item Price.

12.	Press the Save button on the Add Department Exception screen.

13.	Press the Save button on the Edit Tax Jurisdiction screen.

Note: If you have more than one exception, you can change the order of the exceptions in the exception list. Be careful when creating multiple tax exceptions. RetailEdge will calculate sales tax for an item on the Sales Screen by the first applicable exception it finds.