Our sales office and business are outside of the city limits. Suddenly, QBO is adding the 2% city sales tax to the 6.25% Texas sales tax rate. I need to NOT use the city rate, just the state rate. How can I turn off the city portion so that customers pay the correct amount?
No, this doesn't work. We aren't shipping our "product". We are a self-storage facility. Certain storage units are taxable, others aren't. So, for the taxable ones, we need it to only be 6.25%. I did try adding shipping to/from, but it still said I needed to use 6.25% + 2%. I added the actual physical address of our facility, which is outside of the city limits, and QBO still wants to add 2%
I'm here to help share additional information about how the Automated Sales Tax feature works.
As mentioned by my colleague KhimG, QuickBooks Online calculates the tax rate based on multiple pieces of information, such as the physical address of the business and the address on the invoice/sales receipt. It is also in compliance with the IRS in which all tax calculations are automated to comply with the US.
To further isolate the issue, I'd recommend contacting your state agency to verify the rate you've desired.
For more information about how Automated Sales Tax feature works, you can refer below articles: