How to Define Taxes
Taxes and Tax Groups are defined using the following steps:
Click the Rates, Taxes > Taxes link.
Click the Taxes button and then Add New Tax.
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.