I discovered that the Automated Sales Tax within QuickBooks Online is missing a local Colorado sales tax jurisdiction. The jurisdiction is "Southeast Jefferson County LID". I discovered this when I couldn't get the sales tax price to match, when I compared it with the AvaTax sales tax calculator. AvaTax has the additional 0.5% "Southeast Jefferson County LID" sales tax that QuickBooks Online does not seem to have.
Is there a way to confirm if QuickBooks Online has this local jurisdiction in their Automated Sales Tax Database?
I can help get your sales tax rates sorted out, R_Crane.
If your business is not located in any of the cities below, that's the reason why the "Colorado, Jefferson County" tax rate of 0.50% isn't showing up on your sales forms.
You may wish to reach out with your state agency to check if you are oblige to pay Jefferson County tax.
If you have any questions, please let us know. We'er to help.
Thank you for your help. We are located in Golden, Colorado and do see the Jefferson County, Colorado sales tax being calculated. What we do not see is an additional 0.5% local improvement district tax that we see when calculating this delivery through AvaTax, as well as the Colorado State website sales tax calculator. On each of these calculators I'm getting a total of 5% sales tax. QuickBooks Online is calculating a sales tax rate of 4.5%, because it is leaving out the "Jefferson County SE Lid" 0.5% local improvement tax. My order is going from Golden, CO to Littleton, CO.
Unfortunately unlike AvaTax, I cannot find a way in QuickBooks Online to confirm if this local improvement district tax is in their database. I have been a user of AvaTax and I've been debating switching to using the Automated Sales Tax within QuickBooks Online, yet I'm getting this discrepancy.
Hello there, R_Crane.
Thank you for getting back to us and adding more clarification about the local improvement tax. I'm here to help provide the support you need to correct the sales tax rate.
For those users with the Automated Sales Tax feature enabled, I recommend giving us a call. One of our Phone Support Specialists will need to check your account in the system to determine if the local improvement district tax is in the database.
Here's how you can reach them:
Please get in touch with me here should you have any additional questions or concerns. The Community will keep an eye out on your response.
After two unsuccessful phone calls to QuickBooks Support, I've been told that the QuickBooks Automated Sales Tax database gets all their information from what the Colorado Department of Revenue provides. Would there be a reason why QuickBooks would not have the SOUTHEAST JEFFERSON COUNTY LID 0.5% sales tax in their database, yet AvaTax as well as other approved Colorado sales tax calculators include the SOUTHEAST JEFFERSON COUNTY LID 0.5% sales tax?
Without any resolution to this I'll need to revert back to a third party sales tax software service.
I don't want to see you leave because of this, @R_Crane.
Allow to me share additional information on how the Automated Sales Tax Center works in calculating your SOUTHEAST JEFFERSON COUNTY LID tax.
The calculation of your sales tax depends on how you set it up in the system. Since you're purchasing from Golden, CO to Littleton, CO. you'll have to indicate that in the system. Please refer to the screenshot below:
By doing so, all the related sales taxes that you'll need to pay will be applied.
On the other hand, I'd recommend consulting your accountant for you to be guided properly on the best route to take in calculating SouthEast Jefferson County tax.
If there are any features you'd like to learn more about, our Community articles can come in handy: https://quickbooks.intuit.com/community/Help-articles/ct-p/help-articles-us.
Feel free to click the Reply button if you have other questions about calculating local sales tax in QuickBooks Online. I'm always here for you.