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rwrider
January 21, 2020
Solved

Quickbooks Pro 2016 Changing Sales Tax Rate

  • January 21, 2020
  • 1 reply
  • 0 views

My local city raised the tax rate from 2.25% to 2.75%. It is impossible to modify this field. I got to the ITEMS list and double-click the item named TN Sales Tax. I am directed to the edit window. The only field that I can GET FOCUS is the TAX ITEM. The RATE field where I need to update WILL NOT GAIN FOCUS, and unable to modify that value from 2.25 to 2.75.

 

What the heck is going on here?

 

Best answer by Anna S

Hello, @rwrider.

 

Thanks for providing the path to your solution here in the Community.

 

Should you hit any other snags in the road, feel free to always come back to us for help. Wishing you continued business success now and the future!

1 reply

Ashley H
Ashley H
January 21, 2020

Good evening, @rwrider. Thanks for reaching out to the Community. You've come to the right place.

 

There are two options to approach this situation. You can change the Sales Tax Rate by going to the Item List and locate the Sales Tax Item you need to edit or you can inactivate the old Sales Tax Item and create a new one. Either option won't affect the previous transactions created using the old rate. I've listed the steps below on how to do each process with ease:

 

How To Edit The Tax Rate:

  1. Click the Lists menu, then Item List.
  2. Locate the Sales Tax Item that you need to edit.
  3. Right-click the Sales Tax Item and press Edit Item.
  4. Change the Tax Rate.
  5. Hit OK.

How To Inactivate Sales Tax Item:

  1. Click the Lists menu, then Item List.
  2. Locate the Sales Tax Item.
  3. Check the box beside Item is inactive to inactivate the item.
  4. Hit OK.

How To Create A New Sales Tax Item:

  1. From the Type drop-down, choose Sales Tax Item.
  2. In the Sales Tax Name field, enter your preferred name for the tax item. I recommend using the location of the tax for the name. Further information can be entered in the Description field.
  3. In the Tax Rate field, enter the specific rate for the item.
  4. In the Tax Agency field, type the name of the collecting agency (set up as a Vendor). If the agency is not on the list yet, select Add New to set it up.
  5. Hit OK.

Here's an article that provides more information: Sales Tax in QuickBooks Desktop.

 

The Community will always have your back with your QuickBooks needs. I'm only a comment away if you need anything else.

R
rwriderAuthor
January 22, 2020

Thanks for your suggestion. Maybe I didn't explain the problem of changing LOCAL tax rate correctly.

I worked it out on my own!!!

Here is what the issue was:

1. I was trying to change the item called TN Sales Tax.

2. TN Sales Tax is actually an ITEM of the GROUP type.

3. The GROUP contains two ITEMS, (1) is item called STATE, (2) is item called LOCAL

4. I suddenly realized looking at the ITEM LIST, and saw these two items.

5. I changed the ITEM called LOCAL to 2.75%

6. Now, the GROUP ITEM called TN SALES TAX reflects the change.

So much to know. I hope I can remember for the next time, which I hope never comes!!!

Anna S
Anna SAnswer
January 22, 2020

Hello, @rwrider.

 

Thanks for providing the path to your solution here in the Community.

 

Should you hit any other snags in the road, feel free to always come back to us for help. Wishing you continued business success now and the future!

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