Tiered Taxes

Allows you to charge different tax % rates based on the total amount on a contract.

Taxable Amount Up To - When an amount is entered in this field, the amount will be used for both the rental tax and the sale tax individually.

Enter a dollar amount under the tier 1 Taxable Amount Up To. It will charge the tax amount set in tier 1 on both the rental and sale amounts individually. When either the rental or the sale amount exceeds the amount in the Taxable Amount Up To. then it will use the tax rate % set in the tier 2 columns.

            * Note: Taxable Amount is not the combination of the rental and sale of a contract, it is the individual amount of the rental and the individual amount of the sale. Asset Sales are still technically rental items, and so their tax would be calculated independently of any actual sales items that might be on the contract or with any additional rental items that may be present.

                    For example, if a contract has $8000 in rentals and $2000 in sales, and the Taxable Amount Up To is set to $1500.00, the first $1500 of the rental will be taxed at 9.25% and the first $1500 of the sales will be taxed at 9.25%. Any amount over the $1500 will use the tax set in the tier 2 column. If the amount in either the rental or the sales is below the amount set in Taxable Amount Up To, then it will use the tax set in tier

                    Example 2. If the rental is $8000 and the sale amount is $1300. Then the first $1500 in the rental amount would be taxed at 9.75% with the rental balance being charged the tier 2 tax of 7%. The sale amount would only be charged the tier 1 tax rates since it did not exceed the amount set in the Taxable Amount Up To.