Your software includes the ability to easily add, enable, disable, and delete multiple tax rates. Having the ability to quickly apply tax rates to multiple facilities at once simplifies updating your software as tax codes change. Tax Rates can be added to a unit or group of units, insurance(s), service(s), fees, miscellaneous item(s), or retail item(s).
This article will explain:
Your Tax Rate settings
Your Tax Rate settings can be found by navigating to the Settings page of the Corporate area of your software. You’ll find your Tax Rates on the Software Settings tab under the Billing heading.
There are two tabs in your Tax Rates settings: Tax Rates and Tax Types. Tax Rates determine the percentage charged for each Tax Type. To add a new Tax Rate, you must first ensure that you have an appropriate Tax Type set up.
The Tax Types tab shows you the different types of Tax Rates you have set up for your company. The In Use? column displays a Yes for tax types that are in use and No for tax types that are not currently being used. If a Tax Rate is not being used, a Delete button will be enabled in the far right column that can be used to remove Tax Types you do not need.
Adding a new Tax Type
From the Tax Types tab, click + Add new tax type.
Type the name of the new tax type into the field that opens, and click Save.
⚠ Important note about the Auction Tax type: Ensure that you only use the Auction Tax type that is automatically populated in your software for auctions. Only the taxes with the default Auction Tax type can be pulled in by Auction Manager when processing an auction.
The Tax Rates tab lists your facilities and displays the Tax Types that are in use for each facility, along with the Tax Rate that is enabled for each type.
Editing Tax Rates
You can adjust Tax Rates for just one facility or for multiple facilities at a time. Adjusting tax rates for multiple facilities is a time-saving method if you have several facilities that need the same tax rate added or adjusted.
Check the box or boxes to the left of each facility that needs to be updated and click the Edit Rates button.
Type: Select the Tax Type from the dropdown menu that you wish to add or edit. If the Tax Type is not available in the dropdown, create a new Tax Type using the instructions above.
Description: Enter a description of the Tax Rate. It is common to have the same description in this field as the Tax Type.
Rate: Enter the Tax Rate. Example: If the rate is 10%, enter 10 in this field.
If you are editing more than one facility and they don’t have the same existing tax rate for the type you selected, you’ll see a message reminding you that the facilities’ tax rates don’t currently match for this type. If the rate you’re entering is the current tax rate for that type for all the facilities you’ve selected, you can proceed to enter the tax rate and select the appropriate account code.
⚠ When updating tax rates for multiple facilities, you’ll need to be mindful of your facilities’ locations. If you are updating a local tax for facilities that are not in the same city or state, ensure that they do in fact have the same tax rate because the same rate will be applied to all facilities.
Account Code: Select the appropriate account code from the dropdown.You can learn more about account codes in our Help article: Account Codes.
Conditionally Apply: You can apply the Tax Rate conditionally to a tenant’s rent only if they are storing a vehicle by clicking the radio button for Units storing vehicles only.If you are using this option, ensure the correct Tax Rate is applied to unit groups that could accommodate a stored vehicle by following the instructions in the Applying Tax Rates section of this article.If this option is enabled, the Stored Vehicle Only tax rate will be applied when a stored vehicle is added to a unit by selecting Yes for Storing Vehicle.
Click Update Facilities to save your changes.
Disable a Tax Rate
You can disable a Tax Rate by clicking the Disable button to the right of the Tax Rate.
Applying tax rates
Apply tax to unit groups
Once you've added a new Tax Rate, navigate to the facility level of your software and click on the Settings tab. Click Units.
Click Edit for the units that require the tax.
Scroll down to the Other Details section and check the box next to the appropriate Tax Rate. Click Save when you are done.
Apply tax to a retail item
Once you've added a new tax rate for retail items, navigate to your facility’s Settings tab and select Retail Items.
Click Edit for the items that require the tax, and check the box next to the appropriate tax rate. Click Save.