Auto calculate NY tax for Clothing\Footwear under $110 on eCom

grandmabianchigrandmabianchi Member Posts: 1
I hope this helps others in NY who need 2 tax rates for items that are not subject to NY tax but are to the local county and or municipalities such as clothing and footwear under $110. Obviously this will work for other areas that have similar rules based on the item.

First make sure the items are set to calculate tax automatically. I am not going to explain the procedure for this as its well covered well in the documentation by LS and you probably already know how to do this.

Now go to Settings>Taxes and if you have not set up your country yet click on "Change Country Selection" then select your country and click save. In my case I selected "United States"

You will now see your country listed and next you will click on the Edit button for your Country. The first thing you need to do is select your location so click on "Add a physical location" and a slide out appears. For the Name use something that lets you know what store you are setting this up for like if you had more than one location. I only have one location so I named it the name of my business. Next enter the address information for your location and click save when finished. You should now your location listed with your zip code, county, and the tax rates for NY and your county, and the total tax rate. Mine says My business name, Monroe County, 4%+4%, and 8% total.

Now we are going to add a tax class so click "add a tax class" and a box appears that wants you to enter a name. I entered the name Clothing under $110 but you can name it whatever that helps you know what the tax class is for. You will now see the tax class you created listed.

Next we will create the tax override for the tax class we just created so click on "Add a tax override". If you get an error saying you need to create a tax class first just exit and try again. You will then see a box that wants you to select from a drop down a tax class so select the tax class you just created. Again in my case it is called Clothing Under $110 and click save.

Now in the tax overrides section you will see the tax class listed and we need to edit it so click on the name of the override you just created to edit it. Make sure you are clicking in the override section and not the tax class section since they have the same name. It will bring you to a new screen that lists the tax class, a section called tax rule with the option NY Clothing under $110 with a slider that you want to enable. and a tax rates section. (Note: Just enabling the NY Clothing Under $110 did NOT correctly calculate the correct tax for clothing under $110.) In the Tax Rate section change the New York (State) tax rate to 0 and then click save then back to United States or whatever country you are from.

Now go back up to the Tax Class section and click on the tax class "Clothing Under $110" or whatever you named it. Make sure you are clicking in the tax class section or you will be in the wrong area. A new screen pops up and you will see a section called products and the option to add products. Any product you add to this list will only have the local county and/or municipalities taxes applied, the NY state tax portion of 4% will not be applied to these items you add. So click on "Add Product and a list of your products will be displayed. Now click on the Choose button to the right of the items in the list that you want added to the under $110 class. You can use the filter option at the top of the list to help reduce the number of items to help make it easier. If you click on choose twice you simple get an error popup that says its already selected. If you accidentally choose a item that you do not want on the list we can fix this easily later. After you are done choosing the items that need to be excluded from the NT State portion click close and you will see the list of items. At this point you can click on the trash can to remove any item that were accidentally chosen. You will get a warning that deleting this item will be permanent but don't worry, it means only from this list, not your inventory, and you can go back and re add it this list if needed so it's not actually permanent.

Finally click save and then back to taxes and then back to settings. Your items will now automatically calculate the correct tax rate, in my case just 4% not 8%. Remember that any new items than need this must be added to the list in the tax class section. To get back to this list go to Settings>Taxes> Click on your country and then the name of the tax class you created in the tax class section.

Please feel free to offer any suggestions on edits or ways to explain things better or if there is a better way to auto calculate the correct tax rates.

1 comment

  • JoeyJoey Administrator, Moderator, Lightspeed Staff Posts: 277 moderator
    @grandmabianchi the issue with the checkbox "NY Clothing Under $110" not working has been resolved. This will make sure the tax override is only applied to orders under $110.
    eCom Support Team
    Lightspeed HQ
Sign In or Register to comment.