Sales Tax with GnuCash

[Derek Atkins]

Mike or Penny Novack <stepbystepfarm at mtdata.com> writes:

[snip]
> That solution works if/f you always compute tax A on top of tax
> B. Again in my experience this is not always the case. To give an

Of course.  If you have different sets of rules then you need different
tax tables.

> example. Suppose town X has a "sales tax" that applies to all goods
> and services to be applied after a state sales tax that applies to
> goods and services except items of clothing costing less than X (my
> own state does that). Then you can't solve the problem by simply
> adjusting the local sales tax table because whether tax on tax depends
> upon what the item is and the amount. Here Federal, State, and "local"
> tend NOT to agree in all details. Go to the automotive shop and buy a
> pair of tires and a gallon of antifreeze and the sales tax on the
> tires is on top of a federal tax that applies to tires but doesn't
> exist for the antifreeze.

Correct, in this case you would need two tax tables, one for "tires" and
one for "antifreeze".

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
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