Tennessee Sales Tax

SUGGESTED

Is there anyone using Sage BusinessWorks in Tennessee who has been able to set up the tax items single line item over $3500.00 without having it take the discount off the total of multiple items totaling over that amount?

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    SUGGESTED

    Jenny Mariner-

    Unfortunately, I am not sure I am clear on what you are asking.  In BusinessWorks, you can enter discounts as you are entering individual line items or your can enter discount on the Summary screen of the invoice, which apply to the whole invoice.

    For more information on discounts, please see article:  How can I add a discount to my customer invoice?

     Otherwise, if you do not get any further response and would like to discuss this further with a support analyst, please reach out to the Live Chat team by going to www.sage.com/resources

    Sincerely,

    Coleen

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    Here is an example of Tn single article sales tax. 

    any help would be appreciated.

    A single article is defined as one item of tangible personal property that is considered by common understanding to be a separate unit, apart from any accessories or extra parts. It should be capable of being sold as an independent unit. For example, a dining room table would be considered a single article. Multiple items of tangible personal property sold in sets, lots, suites, or other groupings that are sold for a single price are not single articles, such as a dining room set.

    The 7% state tax applies to the entire purchase price of the item or grouping of items. However, the local tax rate applies only to the first $1,600 of the sale price of a single article of tangible personal property. There is also an additional state tax of 2.75% applied to the amount in excess of $1,600 but less than or equal to $3,200.

    Assuming the local tax rate is 2.75%, state and local tax due on the sale of a dining room table that sold for $4,000 would be calculated in the following manner:

    • State tax: full sales price is taxed at the general state tax rate 7%: $4,000 x 7% = $280.
    • Local tax: first $1,600 of the price is taxed at the local rate 2.75%: $1,600 x 2.75% = $44.
    • State tax: additional state tax at 2.75% on the price from $1601 to $3,200: $1,600 x 2.75% = $44.

    Total state and local tax due on the sale of the dining room table: $368.

    The sales price of taxable services, amusements, custom computer software, specified digital products and warranty or maintenance contracts are fully taxed at the local tax rate and are not taxed for the additional state tax rate at 2.75%.