Tax rates and descriptive data are effective January 1, 2018. These rates are updated quarterly. Price per download for states having multiple tax districts is $39.95 for each state. Sample files are provided for California, Colorado, Texas, and Washington and may be downloaded for no charge.
Tax rates are in csv text format, which is the commonly accepted format for import into Magento e-commerce. The files can easily be modified for other applications using, for example, Microsoft Excel. The files have headers, which is required for Magento, and it may be necessary to remove them for other applications. Please note that while these files contain tax data specifically designed for Magento, they may be reformatted for other applications.
These files have added fields (compared to standard Magento) which include identifiers for sales or use rates, tax districts, tax district descriptions, and indicators as to whether shipping charges are subject to tax. (In the standard Magento, shipping charges are identified as either taxable or not, however this issue really depends upon the State where the transaction takes place.) Click here to review Section 1 of the description of Tax Compliant products.
Before using these rates to collect tax in any state, you should be aware of its sales and use tax regulations. Taxcompliant.net does not offer specific advice or interpretation of those regulations for any particular retailer. Also, Taxcompliant.net does not specifically gaurantee that these rates are wholly compliant with any law or regulation, nor does Taxcompliant.net gaurantee 100% accuracy for the rates provided.
Before collecting either sales or use tax, the retailer must first register with the state where sales transactions take place. As a guide, these are some general issues that should be addressed with the state:
- Taxcompliant.net rates are for tangible personal property. This classification generally applies to most products, however states may treat some items differently where there may be separate rates, or the products may not be taxable. Examples might be food, construction equipment, etc.
- Does your firm have “nexus” in the state? Firms generally have “nexus” in a state if they are physically located in the state, or have some other condition that establishes a business presence. Firms with “nexus” must collect and remit sales tax (not use tax).
- If your firm has “nexus” in the state, should it collect tax based on the location of the firm, or the location of the customer (where the item is shipped). A state is considered to be origin-based if it requires tax collection sourced at the firm’s location; the state is considered destination-based if it requires tax collection sourced at the customer’s location.
- If your firm does not have “nexus” in the state, do you wish to voluntarily collect use tax? By volunteering to collect use tax, your firm is relieving your customers from paying use tax to the state for purchases from your firm (use tax is required for purchases made where sales tax has not been collected).
Below are sample sales tax files for California and Washington and sample use tax files for Texas and Colorado. There is no charge for downloading these files. Click on the state sample to initiate the download process.
Before downloading the tax files offered here, please be sure that your particular circumstances, especially with respect to nexus, are covered. It is also important that state sourcing rules and issues involving sales or use tax collection are considered. Files are offered in separate categories depending upon nexus, sourcing, and options for sales or use tax.
Category 1–Files in this category are for states that are destination-based and have multiple tax jurisdictions. Firms with nexus may use them to collect sales tax. Firms without nexus may use them to collect use tax, except for Alabama, Louisiana, Missouri, and Oklahoma. (Use tax rates are different for these three states, and are offered separately in other categories below.) The price for each state download is $39.95. Click on the state you prefer to initiate the download process.
*Use tax rates for states with an asterisk are different than Sales tax rates. These rates should not be used to collect Use tax by retailers who do not have nexus in these states.
Category 2–Files listed below are for states that are origin-based (except Alabama, Missouri and Oklahoma) and have multiple tax jurisdictions. Firms without nexus may use them to collect use tax. (For firms with nexus in origin-based states, see Category 4, “Firms with nexus, origin-based states”) The price for each state download is $39.95. Click on the state you prefer to initiate the download process.
*Use tax rates may be different than Sales tax rates for States noted with an asterisk.
Category 3–States with a single rate, where the sales tax rate is the same as the use tax rate, require only a single entry in the Magento tax rate file. This rate is applied uniformly throughout the state– without regard to the seller’s location or the customer’s location. States with a single rate in this category are Connecticut, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, New Jersey, Rhode Island, Wisconsin and the District of Columbia. Since simple imports are sufficient for these single rate states, multi-rate downloads are not offered. Click here for Single State Rates for import to the Magento tax rate file. If the Taxcompliant.net Magento_Import extension is used, the report function will show activity by zip code with a single tax district and tax description. The extension will also assure the proper application of sales tax on shipping charges.
Category 4–Firms with nexus, origin-based states–Retailers located in an origin-based state require only a single entry in the Magento tax rate file. This sales tax rate can include local and special jurisdiction tax rates as well as the state rate applicable to the retailer’s location. Origin-based states in this category are Colorado, Illinois, Mississippi, New Mexico, Ohio, Pennsylvania, Texas, and Utah.This is best achieved by manually updating the file, therefore multi-rate downloads are not offered. Click here for Origin-based State Rates for import to the Magento tax rate file. If the Taxcompliant.net Magento_Import extension is used, the report function will show activity by zip code with a single tax district and tax description. The extension will also assure the proper application of sales tax on shipping charges.
Category 5–Louisiana and Illinois have a single use tax rate, which is different from the sales tax rate. This requires a single entry, and is best achieved by manually updating the Magento tax rate file. Click here for Illinois and Louisiana Single Use Tax Rates for import to the Magento tax rate file . If the Taxcompliant.net Magento_Import extension is used, the report function will show activity by zip code with a single tax district and tax description. The extension will also assure the proper application of sales tax on shipping charges.
Category 6–An e-commerce retailer, with nexus in Colorado, should coordinate closely with the Department of Revenue to determine how to correctly deal with the collection of sales and use tax. The State’s rules are complicated, especially with respect to “direct” locations for collecting sales tax and “indirect” locations for collecting use tax. A “hybrid” file, consisting of sales tax rates for “direct” locations and use tax rates for “indirect” locations may meet the State’s requirements. It may be useful to review the Colorado Department of Revenue Ruling, GIL-14-005, Subject: Mail Order Sales, dated April 28, 2014. Contact us if you are interested in a customized file that meets your particular circumstance.