Incorrect processing of Tax

[lat9]

That's because (as @wilt indicated earlier) he's working on a solution for stores that use a tax-basis of "Store". Please be patient, it's not an easy correction.

[dbltoe]

That was clarification. Not impatience.

it was the first time there has been any indication that setting the tax to store would only be charged if the buyer was in the store zone.

That is simply counter to what the settings infer.

I understand the desire to “work on one’s own turf”, but I still offer the test site and any other assistance needed in solving this issue.

[wilt]

Hi

First off as per internet regulations, I'm not a Tax lawyer. :)

I had a quick look at New Mexico state law and as ever all the information is poor with no definitive guidance for e-commerce sales
If any one else has some more insight, feel free to post here.

if it is the case that New Mexico requires you to charge x% for any US destination, then this is doable in Zen Cart

Basically you need to set up a Zone Definition which is tied to USA and covers all zones within the USA rather than tying it to a specific State like say the example Florida sales tax.

You can do this in Zone Definitions

Click on Insert and name the zone, e.g. New Mexico

For the newly created New Mexico entry click on the 'Details' button in the right side bar.

Now click on insert

you can then set the country to USA and the zones to all zones
(it doesn't give you an option for all zones, but as long as you don't select a zone and submit it will set to all zones)

Lets go to Tax Rates next

You might already have a taxable goods tax rate here.
If so, edit it
and change the Zone to New Mexico and set the TaxRate and description appropriately
If no Tax rates set then just create one and go from there.

HTH

[dbltoe]

New Mexico does not have a "Sales Tax" per se. It has a "Gross Receipts Tax" which is levied against ALL e-commerce sales. It is up to the seller to decide if the tax is passed on to the consumer or not.

The GRT is charged the owner whether the sale is in Albuquerque, London, New York, Sydney, or Tajikistan. The seller, particularly our customer, has the option to pass that tax on to the customer or raise their prices to absorb the fee.

This is not an option as the seller also attends functions in other states selling his product and feels the basic price should be the same to all customers. If the GRT were added to the product when selling in Texas, the Texas Sales Tax of 8.5% would added making the product less expensive if they skipped his Texas show and bought online.

The fairest to the customer is to add the GRT as if a Sales Tax is being charged to the whole world if they purchase online.

With that in mind, why would a store set to charge tax on the store's location not be able to charge tax to anyone?. The tax is set on the store's Zone, is it not?

Why are we getting the old "Illegal bounds interupt, STOP" from the system when we say charge based on the store's tax rate for both shipping and the product?

Other note to follow....

[dbltoe]

I wanted to keep this separate from the other as I think it has been lost in the shuffle.

THIS IS CURRENTLY THE STORE

Configuration >> My Store >> Basis of Product Tax and Basis of Shipping Tax set to Store

Display Prices with Tax to true

Shipping is USPS, Taxable Goods, Tax Basis - Store

Zone Definitions show New Mexico and described as New Mexico Gross Receipts Tax Zone

Tax Classes set to Taxable Goods

Tax Rates is set to Taxable Goods, Zone - New Mexico, Tax Rate - 7.75%

With the stated logic that any order from Texas should not show up as being taxed, that is what is happening.

With the stated logic that any order from New Mexico should show up as being taxed, (again) that is what is happening.


BUT...

Although the tax shows everywhere the system tells it to be displayed, it is NEVER added to the Total!

In my mind, this constitutes an error.

He said patiently

[dbltoe]

AND.....

The tax should be $1.62 if shipping is correctly taxed as listed.

[mc12345678]

I wanted to keep this separate from the other as I think it has been lost in the shuffle.

THIS IS CURRENTLY THE STORE

Configuration >> My Store >> Basis of Product Tax and Basis of Shipping Tax set to Store

Display Prices with Tax to true

Shipping is USPS, Taxable Goods, Tax Basis - Store

Zone Definitions show New Mexico and described as New Mexico Gross Receipts Tax Zone

Tax Classes set to Taxable Goods

Tax Rates is set to Taxable Goods, Zone - New Mexico, Tax Rate - 7.75%

With the stated logic that any order from Texas should not show up as being taxed, that is what is happening.

With the stated logic that any order from New Mexico should show up as being taxed, (again) that is what is happening.


BUT...

Although the tax shows everywhere the system tells it to be displayed, it is NEVER added to the Total!

In my mind, this constitutes an error.

He said patiently

AND.....

The tax should be $1.62 if shipping is correctly taxed as listed.

Although the edit orders debug data may reflect the answer to this question as it is the only place I found related data, what is the sort order for the various order total modules?

[wilt]

Not sure how you have your taxes set up

I started with a clean v158 install - no demo products
Set the store location to New Mexico
Removed the Tax Rate for Florida
Created a Zone Definition for New Mexico and a Tax Rate for the Zone @ 7.75

Set basis of Product Tax to Store.

Created a product @ 15.90 and set to Taxable Goods

Created a customer with NM address and purchased product.



With a little more work (edited Flat rate in shipping to be taxable/store) and got this

[wilt]

k.

Think I have reproduced you error.

[wilt]

Can you check your database and confirm the entry_zone_id in addressbook for the customer in the order you posted