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Are you able to set up discretionary sales tax by county in Florida? This tax is only on the first $5000 of the item and is in addition to the 6% state sales tax

 
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Moderator

Re: Are you able to set up discretionary sales tax by county in Florida? This tax is only on the ...

Greetings, @bigrc20.

 

QuickBooks Online allows you to set up the Florida County Discretionary Surtax in addition to the State Sales Tax. Additionally, this feature will allow your customer to see only one sales tax rate on the invoice.

 

Here's how: 

  1. On the left pane, select Taxes.
  2. At the top left, select the Sales Tax tab.
  3. Under the Related Tasks list on the right, select Add/edit tax rates and agencies.
  4. Select New.
  5. Select Combined tax rate.
  6. Enter a Component name for the combined rate and the different sales tax requirements.
  7. Click Add Another Components, if needed.
  8. Click Save.

For more information, I recommend checking these articles:

However, if you don't see the settings I provided at the top, you may be using the Auto Sales Tax feature. If so, the calculation is based on a variety of information entered during the set up. 

  • The state where you have nexus and are registered to collect sales tax.
  • The physical address of your business.
  • The physical address on the sales receipt or invoice.
  • The product mapping you have associated with the products or services you are selling.
  • The exemption status of your customer.

The following article contains additional information about this: Set up and use Automated Sales Tax.

 

If it didn't calculate the discretionary surtax, I recommend reaching out to our Customer Care Support. They have the tools to check your account in a secure manner and verify the sales tax setup.

 

Here's how: 

  1. Go to https://help.quickbooks.intuit.com/en_US/contact.
  2. At the top right, select your product.
  3. Select your QuickBooks version.
  4. Select a topic.
  5. Click on the Get Phone Number or Start a Message button.

That should point you in the right direction today.

 

Keep me posted how it goes. I'll be happy to help you further. Have a great day ahead. 

Established Community Backer ***

Re: Are you able to set up discretionary sales tax by county in Florida? This tax is only on the ...


@MaryGraceS wrote:

Greetings, @bigrc20.

 

QuickBooks Online allows you to set up the Florida County Discretionary Surtax in addition to the State Sales Tax.

Additionally, this feature will allow your customer to see only one sales tax rate on the invoice.

 

Here's how: 

  1. On the left pane, select Taxes.
  2. At the top left, select the Sales Tax tab.
  3. Under the Related Tasks list on the right, select Add/edit tax rates and agencies.
  4. Select New.
  5. Select Combined tax rate.
  6. Enter a Component name for the combined rate and the different sales tax requirements.
  7. Click Add Another Components, if needed.
  8. Click Save.

discretionary sales tax means that it is ONLY used under certain conditions.

 

If you include it in a combined tax rate, it will be used under ALL conditions

 

QBO will not do Florida discretionary sales tax, not even auto sales will do it

 

QBDT can sort of do it with a very complicated work around.

Not applicable

Re: Are you able to set up discretionary sales tax by county in Florida? This tax is only on the ...

How would one handle the discretionary sales tax if one only has QB Online? Any way around similar to the desktop version?

Anonymous
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Re: Are you able to set up discretionary sales tax by county in Florida? This tax is only on the ...

Hello, @agrossauer.

 

I'm here to help share some information on how to handle the discretionary sales tax in QBO. 

 

In the Auto sales Tax feature, the calculation is based on a variety of information entered during the set up as mentioned by my colleague @MaryGraceS. You cannot add this to your tax agency and standard rate, however, you can override the amount/rate. 

 

 

I'll be here to help if you have other questions about your sales tax. Have a good one.

 

Frequent Explorer *

Re: Are you able to set up discretionary sales tax by county in Florida? This tax is only on the ...

Hello, I was wondering if this is also for Quickbooks Desktop Pro?  Thank you. 

Moderator

Re: Are you able to set up discretionary sales tax by county in Florida? This tax is only on the ...

It's good to see you here in the Community, HHA, I'd be happy to answer your post.

 

In line with your concern, the steps provided above are only applicable in QuickBooks Online.

 

As of now, the QuickBooks desktop version doesn’t have the option to automatically change the rate when it reaches the sales tax limit.

 

What you can do is, create two tax items to follow what your state mandate. One for the state tax and other one for the local tax.

 

To create a new sales tax item, here's what you'll to do:

  1. Choose Sales Tax in the drop-down.
  2. In the Sales Tax Name field, enter your preferred name for the tax item. It is advisable that you use the location of tax for the name
  3. In the Tax Rate (%) field, enter the 7% or 6%.
  4. In the Vendor Name field, enter the name of your tax agency. For example, the Florida Department of Revenue.
  5. Click on OK.

For more detailed steps, I've attached a great resource that you can check: Set up sales tax in QuickBooks Desktop.

 

If you have further questions, please feel free to visit the Community again. I'm always here to help.

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