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Compounding Tax Problem

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Started by notset4life on 4 Apr 2007, 3:31 AM · Views: 2,576

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4 Apr 2007, 3:31 AM
#1
notset4life avatar

notset4life

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Compounding Tax Problem

I need to charge tax in 4 states

  1. First, my own state
  2. 3 Other States

I set the basis of charging tax to BILLING

I set up 4 Tax Zones for 4 different states and enter the tax rates as an example:

NJ 8%
FL 7%
AL 5%
UT 5%

(these aren't the actual rates, just entered them here as an example.)

Now when I go to enter a new product, I click TAXABLE GOODS
and enter a price of say $100....it populates the taxable price below that as $125

Easy enough math here: it is adding up all the rates above (25%).

So the price should be $108 for NJ, $107 for Fl, etc

Can anyone explain why it is coming up as $125 in the product entry screen?

thanks

4 Apr 2007, 3:44 AM
#2
ajeh avatar

ajeh

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Re: Compounding Tax Problem

This is because it is adding the taxes together ... which produces an incorrect display ...

We will be looking into this in a future release ...

Linda McGrath
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26 Jul 2007, 2:46 PM
#3
tanyaec avatar

tanyaec

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Re: Compounding Tax Problem

I have the same "need". three states, three taxes. Does this mean there is no way to do this in Zen Cart? OH NO!

26 Jul 2007, 2:56 PM
#4
ajeh avatar

ajeh

Oba-san

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Re: Compounding Tax Problem

You can configure as many tax zones as you need ...

When adding the Product, the taxes are added together, so the amount is distorted ... :cry:

This has been changed in the upcoming Zen Cart v1.3.8 to use the Store tax zone for the Product Price Net/Gross so that there will no longer be a combination of multiple taxes causing this confusion ...

Linda McGrath
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