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dynamiczip:faq:colorado_home_rule_faq

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Colorado Nexus

How can I handle a Home Rule taxing situation in Colorado?

Colorado State may require for you to collect sales tax based on the city and county in which you are physically located. This “Home Rule” requires city tax to be collected only for your “Home” city and county tax to be collected only for your “Home” county. State tax is still required to all locations in Colorado. DynamicZip can help you setup and collect taxes accordingly for Home Rule type requirements.

Example

The following example can be used to illustrate how this situation could be addressed and assumes that Colorado taxes have already been imported with the DZ Rate and Boundary Import window In this example the “Home” location is Loveland (Larime county), CO. To meet this example's requirements in Colorado we must:

  1. Configure DynamicZip to import only the state and county taxes in CO.
  2. Reimport sales tax for CO State.
  3. Add the Loveland Tax Detail back onto the corresponding Tax Schedule.
  4. Remove the county tax details (Except the details for Larimer County.) from the Colorado tax schedules.
  5. Configure the Larimer County & Loveland City tax details to no longer be updated by the Rate & Boundary Import.
  6. Reconfigure DynamicZip to import only the state tax in CO.

Once we have made the above changes, county and city tax will only be collected for sales into Larimer County and Loveland City.

IMPORTANT: DynamicZip will no longer be configured to automatically maintain Colorado's county, county local, city, and city local taxes. We will need to manually monitor the Loveland and Larimer tax rates for any changes. If Loveland or Larimer tax rates change or if the tax details need to be added or removed from tax schedules (As a result of a change in ZIP Codes, city limits, etc.) Microsoft Dynamics GP will need to be updated manually.

Step 1 - Configure DynamicZip to import only the state and county taxes in CO.

  1. Pull up “CO”.
  2. Under the Exclude from Import section, enable the check boxes for “County-Local”, “City” and “City-Local”.
  3. Save the DZ State Setup window.

Step 2 - Import sales tax for Colorado.

  1. Import just Colorado. Please see Import Single State FAQ for help.


Step 3 - Add the Loveland tax detail back to the corresponding tax schedules.

  1. Select Schedules by Description.
  2. Type “CO LOVELAND, LARIMER” for the Starting Description and “CO LOVELAND, LARIMERZ” for the Ending Description.
  3. Limit Schedules to Taxable.
  4. Process: Add Tax Details.
  5. Enable the Limit to Range of Details check box.
  6. Enter “COSTLOVELAN001” for both the Starting and Ending Tax Detail IDs.
  7. Preview the changes, and if they look correct press the Add button.


Step 4 - Remove all the county tax details except Larimer.

  1. Open the DZ Modify Tax Schedules window.
  2. Select Schedules by Description.
  3. Type “CO” for the Starting Description and “COZ” for the Ending Description.
  4. Limit Schedules to Taxable.
  5. Process: Remove Tax Details.
  6. Type “COSN” for the Starting Tax Detail ID and “COSNLAQ” for the Ending Tax Detail ID.
  7. Preview the changes, and if they look correct press the Remove button.
  8. Change the Starting Tax Detail ID to “COSNLAS” and the Ending Tax Detail ID to “COSNZ”.
  9. Preview the changes, and if they look correct press the Remove button.


Step 5 - Configure the Larimer county & Loveland city tax details to no longer be updated by the ZIPsales Import.

  1. Pull up “COSNLARIMER001”.
  2. Set the Import Status to “Update Neither”.
  3. Save the DZ Tax Detail Supplement window.
  4. Repeat 2-4 for “COSTLOVELAN001”.


Step 6 - Reconfigure DynamicZip to import only the state tax in Colorado.

  1. Pull up “CO”.
  2. Under the Exclude from Import section, enable the check box for “County”.
  3. Save the DZ State Setup window.

NOTE: There is another Loveland city tax detail (COSTLOVELAN002) which exists for Weld county addresses. If the Loveland's city tax must be collected for sales into Loveland (Weld county), CO then additional setup will be required. If you are subject to a situation such as this, then please email Kamp-Data technical support at Support@Kampdata.com.


Frequently Asked Questions

dynamiczip/faq/colorado_home_rule_faq.1553107664.txt.gz · Last modified: 2019/03/20 18:47 by conni

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