Defining Taxes

How to Define Taxes

Taxes and Tax Groups are defined using the following steps:

1. Click the Rates, Taxes > Taxes link.

2. Click the Taxes button and then Add New Tax.

3. Enter a name for the tax and then a tax type. Three options are available.

                       a.  The three tax types are described below.

                                         i.  Percent – A standard tax rate that is applied as a percentage. For example, a State Tax of 6.3% on a stay of $100 brings the total amount due to $106.30.

                             ii.  Fixed – A fixed dollar amount that is applied to the reservation per night, for example, a flat $5.00 per night lodging tax with a room rate of $100/night for two nights comes to a total of $210.

                            iii.  Fixed per Invoice – A fixed dollar amount that is applied to the reservation per stay, for example, a flat $10 National Forest Tax. If the total balance due for a two-night reservation is $210 the $10 tax would be added to it, bringing the total to $220.

              4.  Taxes are calculated based on seasons. To add a new season, click the “+” button.

              5.  Complete the two fields under the Season Details heading. The Starts On field defaults to the current date generated in step #4. Enter a value, of 7%, in this example.

              6.  Click the Save Tax button.

              7.  In our example, a second tax will be created, City Tax.

Now that individual taxes have been created, State and City, they can be combined into a Tax Group. From the Taxes, home page, click Tax Groups and then the Add New Tax Group button.

Enter a name for the group and then enter checkmarks next to the individual taxes that comprise the tax group.

Click the Save Tax Group button.