Creating City Tax Agencies in Striven

How To Financials
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Not all US States charge a Sales Tax at the State level, but most do. And some even charge sales tax at a City level, which is why Striven provides the ability to create Tax Agencies for Cities to record taxes when Items and Services are sold.

Only one Tax Agency can be selected on a transaction, so it is necessary to create any City level taxes as Tax Groups to ensure both the State and City level taxes are included in the tax calculation. The following steps will guide you through this process:

Start by creating the State Tax Agency

  1. Create your State Tax agency by selecting “State Tax” as the type
  2. Select the State from the drop-down list
  3. Enter the name you wish to display for the agency
  4. Add the Tax Agency by searching for the appropriate State tax collection agency
  5. Enter the Tax Percentage
  6. Save & Close

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Next, you will want to create the City (only) agency as an OTHER TAX type agency. This will then be used in the Tax Group for the City Tax to include both State and City taxes.

  1. Select “Other Tax” as the Tax type
  2. Name the Tax Agency as the City so you can identify it easily to add to your Tax Group Agency.
  3. Search for the appropriate CITY tax collection agency
  4. Enter the Tax Percentage for the CITY tax
  5. Check the box to make this Tax Agency unselectable as an individual Tax Code since it only exists to be made part of the Tax Group for the City Tax Agency
  6. Save & Close

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Lastly, you will create the Tax Group which will calculate for both the State and City Tax Percentages on transactions.

  1. Select “City Tax” as the Tax type
  2. Select the State from the drop-down list
  3. Name the City Tax Agency
  4. Check the box for Is Tax Group
  5. Select the State for the Tax Group to add the State Percentage
  6. Select the Other Tax for the City to add the City Percentage
  7. Save & Close

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Now, when you create a transaction that has a Ship To address that falls in the City you created the tax agency for, Striven will automatically select the Tax Group so that both the State and City taxes are calculated accordingly.

Example:
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Should you have any questions regarding the setup of your Tax Agencies in Striven, please do not hesitate to contact Striven Support! :slight_smile:

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