Many States in the U.S. have been revising their rules on what is considered taxable and non-taxable, so we have added additional features in ServMan (as of Release A.27) to provide our clients the flexibility to automate compliance no matter what state tax rules you operate under. These new features are especially beneficial to our clients that operate in multiple states. Here is an overview of the changes.
The Tax Exempt check box on Page 2 of the item screen has been replaced by a dropdown list with three options:
When you select “Tax status based on state” a second screen will appear that will let you determine the tax status by state:
- In the State column you should enter the Post Office’s two character state abbreviation for the client’s location account to be used on the work order.
- In the TaxStatus column the dropdown list will let you set the tax status for this item in the appropriate state. You may enter as many state codes as you wish.
If your item does not need to have its tax status determined by state then you do not have to change anything.
If you wish to modify your item’s tax status en masse then our Support department can help you perform the following tasks:
- Set the TAX_EXEMPT fields on the appropriate items to “S”.
- Add a record in the ITEMTAXSTATE table with the appropriate setting for each item for each state. (Where the state affects the tax status of the item.)