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      Calculating Taxable Values for Grouped Items When Only a Portion of The FMV Is Taxable

       

      FMV for Items when the taxable value is different


      This Best Practice is to assist Administrators in calculating taxable values for grouped items when only a portion of the FMV is taxable.

      There must be a Sales Tax Value set up. Choose Software Settings > Auction Settings > Payment. Enter the Sales Tax as a whole number (10% would be 10, 6.5% would be 6.5). Additionally, the Tax Calculation has to be set to FMV.


      Example: Three items are put together under one item number to create one package. A $300.00 FMV (Football Tickets (non-taxable), $100.00 FMV (Parking Pass (non-taxable), and $100.00 (Football Necklace (taxable). The Total FMV for this package is $500.00 however only $100.00 is taxable.


      Formula

      Taxable FMV / Total FMV = Portion of the Item that is taxed x Tax rate x 100


      Translated: $100.00 (this is the item or items FMV subject to tax) divided by $500.00 (this is the total FMV for all items in this group) = .2 (this is the percent 20% that will be charged against the tax rate) multiplied by .06 (state tax rate of 6%) multiplied by 100 = 1.2


      The 1.2 would be the value placed in Cell M in our downloadable Items template if doing a Mass Upload of items. See Below



      Previously we provided the formula, however below you will see the taxed value at the item level which is also shown in Cell M above. The below illustration is at the item level (Items>Manage Items). The Market Value must be filled in, additionally, Is this item Taxable (yes) then the calculation will open up below. When you add the taxable portion of the FMV it will show you the value to the right (1.2) transcribe that value to the Item Tax Rate box below.