Adding Tax Rules for Individual Sellers on Live Buy Local:
If you’re selling in the U.S. (which you are!), you will need to charge tax on your product when you’re shipping to the same state that you’re selling from. Below are simple guidelines to help you set up tax collection on your seller profile page so that Live Buy Local will automatically take care of this for you. You only have to set this up once, and you’re all set! If you have any questions, feel free to reach out at hello@livebuylocal.com
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After you’ve filled out your seller profile, find the Tax Manager on the Left Hand Navigation. As a guideline, we’re going to provide an example using the following shop name and location:
Shop Name: Susan’s Local Shop Location: Massachusetts
Step 1: Identifying your Tax Class
-From Tax Manager (on the left hand nav)
a) Select Product Tax Classes from the menu
b) Hit Add New Tax Class Button (upper right)
c) Give your Tax Class a unique name using this guideline: “Your Shop Name - Taxable Goods”. Our example tax class name would be “Susan’s Local – Taxable Goods”
d) Hit the Save Button (upper right)
Step 2: Creating Your Tax Zones and Rates (one for shipping to the same state where tax will need to be added, and one for shipping to any other state where there will be no tax added.)
-From Tax Manager (on the left hand nav)
a) Select Manage Tax Zones & Rates
b) Hit Add New Rate Button (upper right)
c) Fill out the Tax Identifier field using this guideline. “Your Shop Name - The state where it’s located”. Our example name would be, “Susan’s Local – Massachusetts”.
d) Under Country it should always be “United States” (this should already be filled out)
e) Under State, select your state from the drop down menu (ours would be Massachusetts)
f) Under Zip/Post is Range, it should say “no” (this should already be filled out)
g) Under Zip/Post Code, if should have a “*” representing all zip codes in the state (this should already be filled out)
h) Under Rate Percent enter the % sales tax you need to charge in your state. To make it easy for you, we’ve included a list of rates for every state below. Enter just the number, not the % sign. (As a guideline, for Massachusetts we’d enter 6.25)
-Hit the Save Button (upper right)
-Repeat the steps above for your second Zone/Rate.
a) Hit Add New Rate Button (upper right)
b) Fill out the Tax Identifier field using this guideline. “Your Shop Name – All Other States”. Our example name would be, “Susan’s Local – All Other States”.
c) The Country field should always be “United States”
d) The State field, should be “*”
e) The Zip/Post is Range should be “no”
f) The Zip/Post Code field should be “*”
g) The Rate Percent you should enter is 0.00
h) Hit the Save Button (upper right)
Step 3: Applying rules to the appropriate zones/rates
-From Tax Manager
a) Select Manage Tax Rules
b) Hit Add a New Rule
c) Name your rule using this guideline: “Your Shop Name – Shipping from your state”. Using our example, our Tax Rule Name would be “Susan’s Local - Shipping from Massachusetts”
d) The customer tax class should already be filled out as “Retail Customer”
e) The product tax class should already be filled out with the name you entered in step 1
f) Now we need to apply our rule to both of our zones, so under Tax Rate, select both of the zones you created (your state, and all other); You can select both by holding shift and clicking on both zones
g) The Priority field should be 0
h) The Sort Order field should be 0
i) Hit the Save Button (upper right)
You should now be all set! When you add a new product, make sure you select the tax class that you’ve named here for your products (for us Susan’s Local – Taxable goods). Now whenever one of your products gets shipped to your own state, tax will be automatically added. If it’s shipping anywhere else, it won’t. Voila!
State by State Tax Rates:
Alabama 4.00 Montana 0.00
Alaska 0.00 Nebraska 5.50
Arizona 5.60 Nevada 6.85
Arkansas 6.50 New Hampshire 0.00
California 7.25 New Jersey 6.625
Colorado 2.9 New Mexico 5.125
Connecticut 6.35 New York 4.00
Delaware 0.00 North Carolina 4.75
District of Columbia 6.00 North Dakota 5.00
Florida 6.00 Ohio 5.75
Georgia 4.00 Oklahoma 4.50
Hawaii 4.00 Oregon 0.00
Idaho 6.00 Pennsylvania 6.00
Illinois 6.25 Rhode Island 7.00
Indiana 7.00 South Carolina 6.00
lowa 6.00 South Dakota 4.50
Kansas 6.50 Tennessee 7.00
Kentucky 6.00 Texas 6.25
Louisiana 4.45 Utah 6.10
Maine 5.50 Vermont 6.00
Maryland 6.00 Virginia 5.30
Massachusetts 6.25 Washington State 6.50
Michigan 6.00 West Virginia 6.00
Minnesota 6.875 Wisconsin 5.00
Mississippi 7.00 Wyoming 4.00
Missouri 4.225