Massachusetts has a luxury tax that applies to items over $175, and Rhode Island has a luxury tax that applies to items over $250. BridalLive can calculate tax on these applicable Items for you.
Setup
- Go to Settings > Point of Sale > Tax Codes in your BridalLive.
- Click on “Add Tax Code”.
- Add the Description & Tax Percent and select defaults; on the “Special Tax?” section, select “Yes”.
Note: If you do not see the “Special Tax?” option, you will need to make sure your state is set to Massachusetts or Rhode Island in your Company Profile.
If you have existing Items that will need to be updated to use this new Tax Code, you can update them following this guide.
This new tax code will calculate the Sales Tax on the amount above $175 in Massachusetts and $250 in Rhode Island using the following formula:
(Item Price – Threshold) x Tax Amount = Sales Tax
For example, if an item is sold in Massachusetts for $275 with a Special Tax rate of 6.25%, the Sales Tax on the Item will be $6.25 because ($275 - $175) x 6.25% = $6.25:
Reporting
There is no special Reporting for the luxury tax; you will find your Sales Tax on any of the Sales Tax Reports found in Reports > Sales Reports, the same as a regular Sales Tax.