Line Item sales Tax with use tax on cost option

Maryland mandates distinct tax rates for various items and the capability to track totals based on whether the item is digital or non-digital. Additionally, Maryland requires us to pay tax on owner-cost items installed on real property, a practice known as a use tax. As a retail store, we bring all items into our warehouse as tax-exempt if they are sold at our store or are not installed on real property. In such cases, we charge customers sales tax. However, if we install the item on real property, such as a door or building, and it becomes a permanent fixture of the property, we cannot charge sales tax on the item. Nevertheless, we must pay sales tax on the item’s cost. This feature would be feasible if Striven had implemented a line item tax system and the ability to track and calculate the cost of use items on an invoice. Our previous accounting system was capable of this. We have been able to circumvent this requirement by using the category and item profitability report to determine which items or use items are subject to sales tax. However, Maryland recently modified its reporting requirements to segregate digital items from other items into separate line items on the tax form. Consequently, the category field is no longer functional for compliance with Maryland’s sales tax reporting requirements. As more states seek to increase their tax revenue, it is likely that more items will be required to have sales tax at varying rates. This feature is long overdue and should be implemented as soon as possible.