Appendix
II
CALCULATING STATE TAX TABLE CODES
-·--~CAt:CUtATING
STATE
TAX
TABLE
CODES
State Tax Code: Represents a series
of
codes which are derived from your State's Retail Tax Chart
to
give
you the highest level of accuracy
in
charging tax. .
Important: This section of the manual will give you instructions for figuring your own tax code if your specific
state's tax code
is
not listed in Appendix
I.
Please take the time
to
follow the "EXAMPLE TAX
CHARr
given
on (Page II-d) and familiarize yourself with the method of determining the
tax
code. Then using
!HE
WORKSHEIT
on (Page
11008),
duplicate
the
method
of
calculating your state tax code
by
the steps described
in this section (to
do
this you will need
to
obtain a
copy
of
your state's Retail Tax Chart from your local Tax
Office). Once completed write
down
the
tax
code and save
the
information for future reference.
STEP A: For
the
follOwing, please observe "EXAMPLE TAX
C':IARr,
Step A, (Page II-d):
Every tax table consists
of
tax brackets. Each consecutive tax bracket is assigned a tax which
is
exactly one cent higher than that assigned
to
the previous tax
bracket
In our "EXAMPLE TAX
CHARr
a
sale
from .00
to
.12 is not taxed. However, in the next tax bracket a sale
from.
13
to
.31
is
taxed one
cent
Ukewise,
in
the next tax bracket a sale from .32
to
.54
is
taxed
two
cents. The tax table progresses in a similar pattem.
Using "THE
WDRKSHEEr,
fill
in
Step
A
with
the
appropriate
amounts
from-your
state's Retail
Tax Chart
as
described. .
STEP B: For
the
following, please observe "EXAMPLE TAX
CHARr,
Step
B,
(Page II-d):
(1)
The difference between the starting amounts of each consecutive tax bracket
is
called a
"breakpoinf. Every tax table consists
of
a particular sequence
of
breakpoints. In our
"EXAMPLE
TAX
CHARr
the difference between .00 and .13
is
.13 cents. This 13
is
the first
breakpoint. likewise. the difference between
.13 and .32
is
.19 cents.
Thus.
19
is
the second
breakpoint The breakpoints continue
in
a particular sequence through
the
entire tax table. It
is
this particular sequence
of
breakpoints that
is
used
to
determine the programming code.
Using "THE
WDRKSHEEr,
fill
in
Step B
by
calculating
the
breakpoints based
on
your
state's
Retail Tax Chart
as
described.
(2)
The sequence of breakpoints
is
divided into "Regular- and "Irregular- patterns.
All
tax tables
repeat a pattern of irregular breakpoints that lead into a pattern of regular breakpoints.
To
determine the breakpoint pattern, continue calculating the breakpoints in Part B until you have
found the "Regular- repeat breakpoint pattern.
Note the following from
our
example:
Br~kpoints·-
13, 19, 23, 27,
27,29
- represent the "Irregular- breakpoint pattern.
Breakpoints - 25,
25, 25,
25
- represent the "Regular- repeat breakpoint pattern.
The "Regular- repeat breakpoint pattern is a point where you will first see a repetition of one
or
more numbers which must then add up evenly
to
(Le.
100,200,300,
etc.). In our programming
example the 'Regular- breakpoint pattern
(25,
25,
25, and 25) add up
to
100.
USing "THE
WDRKSHEEr,
determine
the
"Regular"
breakpoint
pattern based
on
your
state's
Retail Tax Chart as described.
ll-a
To Next Page
Loading...
