State Tax Details - Rates and Tiers Tab

The Rates and Tiers Tab on the Edit State Tax form contains the following information.

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Tax Name
Per Minute Tax	If checked, the tax is based on call duration.
E911 Tax	If checked, the tax is an E911 surcharge.
USF Tax	If checked, the tax is an Universal Service Fund surcharge.
Tiered Tax	If selected, the tax is computed by a range of percentage or flat rates.
Percentage Tax	If selected, the tax is computed by a single percentage or flat rate.
Per Line Tax	If checked, the tax is based on number of lines.
Tax Rates
Rate (%)	If selected, the field defines the percentage that the taxable amount is to be taxed. (Not available if Tiered Tax has been selected.)
Flat Fee	If applicable, defines the flat fee for the tax. (Not available if Tiered Tax has been selected.) Note You can select one of the following options to determine how a flat fee is assessed. These options apply when the Per-line Tax option is not selected. If Per-line Tax is selected these options are ignored. Matching tax class not required (Option 1) - A flat charge will be assessed once per account. The tax engine will not look for a matching tax class. The tax itself would not need to be configured to any particular tax class since there is no matching involved at the SKU level. It simply assesses one charge to all active accounts. By default, this includes both parent and child accounts, regardless of invoice responsibility. Match Tax Class (Option 2) - The tax engine looks for SKUs with an assigned tax class that matches the tax configuration. As long as there is at least one SKU with a matching tax class on an active account, a single instance of tax will be assessed to that account. If an active account has no SKUs that match the tax configuration, no tax will be assessed to that account. Match Tax Class and limit to once per invoice (Option 3) - This is essentially the same functionality as option 2 above, with an extra check to ensure the apply once per invoice rule is enforced. Note: This option supports the Colorado Retail Delivery Fee (CORDF) as described in the article on support for CORDF in the IDI Knowledge Center. Match Tax Class and assess the instance of tax once per instance of the charge (Option 4) - The tax engine looks for SKUs with matching tax class and assesses the tax or fee based on the number of matches found. For example, if an active account has ten SKUs that match the configuration of the tax, ten instances of the flat tax will be assessed to the account.
Tax Tiers
Tier Order	The order in which the tiers are to be calculated.
Max Amt OR Amount	The maximum percentage amount of the tier. OR The maximum dollar amount of the tier.
Tax Rate OR Max Lines	The decimal percentage of the tier. OR If Per Line Tax has been selected, the maximum number of lines of the tier.
Cumulative	The applicable tax is based on the tier of the total taxable amount.
Graduated	The applicable tax is applied per each tax tier.

To make edits:

Click in appropriate fields and make changes. If Tiered Tax has been selected, only the tiers can be edited.
To edit a tier, right-click on the tier and select Edit from the list.
The Edit Tax Tier form is displayed.
Change the fields as necessary.
Note
The Tier Order cannot be modified.
Click Save to save your changes or Cancel to keep the original information.
To Add a tier, right-click on the tier and select Add and then Append to end or Insert here from the menu. “Append to end” adds a tier at the bottom of the list. “Insert here” adds a tier above the selected tier.
The New Tax Tier form is displayed.
Enter the appropriate information and click Add.
To delete a tax tier, right-click on the tier and select Delete from the list. Click Yes at the confirmation dialog to delete it.

Per-Line Taxes

Tax Management allows taxes to be applied to multi-line services. Because some jurisdictions apply taxes differently to different types of services, taxing rules for computing per-line tax must be configured correctly for the taxes to be accurately computed. The two options available for choosing the appropriate tax are either Per Channel tax, or Per Single-Line tax.

When the Per Channel option is selected, only the Primary Rate Interface and other Multi-Channel option will be available.

Note
Choices are not mutually exclusive. If "per single line" is checked and "Primary Rate Interface" or other multi-channel categories are selected, the entire service will be counted as a single line.

The following table lists the options available, when selected:

	Per Single Line	Per Channel	Both
Default	X		X
PBX Trunk	X		X
Centrex	X		X
Primary Rate Interface	X	X	X
Other Multi Channel	X	X	X

Per-Line Tax Configuration

Per-Single Line Options

The following Per-Line Tax class options are displayed when Per-Single Line is checked:

Default
PBXTrunk
Centrex
PRI (Primary Rate Interface)
OtherMultiChannel

Per-Channel Options

The following Per-Line Tax class options are displayed when Per-Channel Line is checked:

PRI
OtherMultiChannel
Note
POTS, Centrex and PBX Trunk are considered non-multi-channel services. If both Per-Single Line and Per-Channel are checked, each channel of a "Primary Rate Interface" or "Other Multi-Channel" service will be treated as a separate line when computing tax.

Per-Line Tax Options

If Per-Line Tax (and Tiered Tax) are checked, the following columns are displayed under Tax Tiers:

Order
Amount
Max Lines
If only Per-Line Tax is checked, the following Tax Rates are enabled:
Rate
Flat Fee

Percentage Tax Option

If Percentage Tax (and Tiered Tax) are checked, the following columns are displayed under Tax Tiers:

Order
Max Amount
Rate

Percentage Tax and Per-Line Options

If Percentage Tax and Per-Line Tax (and Tiered Tax) are checked, the following columns are displayed under Tax Tiers:

Order
Max Amount
Rate
Max Lines
Note
A per-line, percentage, non-tiered tax is not supported at this time. A blinking exclamation mark will display for any checked combinations that are not allowed. Roll the cursor over it to see an explanatory message.