A new addon structure is needed for sales tax in Arizona.

Arizona requires the general contractor to pay sales tax, not subcontractors. With some exceptions, all construction is taxed at 65% of the local rate, not just materials or equipment. This means everything is taxed but the tax. Normally fee structures put fee on everything but the fee. In the summary page these are opposing addons and there is not a way to accurately apply both.
Because Sage thrives on accuracy a new addon structure is needed to apply to all costs but itself regardless of the position in the Totals page.

Reference:
Arizona Revised Statute 42-5075.B.
"The tax base for the prime contracting classification is sixty-five per cent of the gross proceeds of sales or gross income derived from the business..."
http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/42/05075.htm&Title=42&DocType=ARS

by: Bill B. | over a year ago | Other