To handle nontaxable states, you can use Statewide Schedules This approach allows you to specify a single tax schedule ID to use for all taxable customers, and another, single tax schedule ID for all exempt customers (in the given state). By using zero rate tax schedules for both the taxable and exempt customers, you can ensure that no tax will be collected in that state.

DynamicZip can auto-generate the Statewide Schedules These tax schedules are designed to keep all of the customers within a state from being taxed without losing any of the reporting functionality (e.g. You can still track and report sales accurately in the states that you do not collect tax for). These statewide tax schedules can be created quickly and assigned to all states by using the DZ State Setup window.

1. Open the DZ State Setup window.
2. Run the “Create Statewide Schedules” option from the DynamicZip Menu.
3. Based on how many states you want to use statewide schedules in, you may want to use one or more of the following DynamicZip Menu options:
   1. Set Statewide Taxable ID's
   2. Clear Statewide Taxable ID's
   3. Set Statewide Exempt ID's
   4. Clear Statewide Exempt ID's
4. Enter or lookup a state.
5. If you chose to use the Set Statewide Taxable ID's, then the Taxable ID field should contain the statewide schedule. Otherwise, you can enter or lookup the Taxable ID tax schedule. EXAMPLE: CATAXABLE is the Taxable ID for California.¹⁾
6. If you chose to use the Set Statewide Exempt ID's, then the Exempt ID field should contain the statewide schedule. Otherwise, you can enter or lookup the Exempt ID tax schedule.EXAMPLE: CAEXEMPT is the Exempt ID for California.²⁾
7. Press Save.
8. After assigning a Taxable ID and an Exempt ID to a state, you can use the DZ Assign Customer Tax Schedules window to update all of the customer addresses in that state with the statewide tax schedule IDs. Customers who are flagged as exempt in the DZ Customer Supplement window will be assigned the Exempt ID. Customers not flagged as exempt will be assigned the Taxable ID.

1. Open the DZ State Setup window.
2. Run the “Create Statewide Taxable Schedules” option from the DynamicZip Menu.
3. Run the “Create Statewide Exempt Schedules” option from the DynamicZip Menu.
4. Enter or lookup a state.
5. If you chose to auto-insert during step 1, then the Taxable ID field should contain the proper schedule. Otherwise, you can enter or lookup the Taxable ID tax schedule. EXAMPLE: CATAXABLE is the Taxable ID for California.
6. If you chose to auto-insert during step 2, then the Exempt ID field should contain the proper schedule. Otherwise, you can enter or lookup the Exempt ID tax schedule.EXAMPLE: CAEXEMPT is the Exempt ID for California.NOTE: Using a unique tax schedule for the Exempt ID and Taxable ID fields allows you to distinguish exempt customers from taxable customers in the state(s) where you do not collect sales tax. By using an Exempt ID for your exempt customers, you can make it easier to transition if/when you begin collecting tax in the state.
7. Press Save.
8. After assigning a Taxable ID and an Exempt ID to a state, you can use the DZ Assign Customer Tax Schedules window to update all of the customer addresses in that state with the statewide tax schedule IDs.

NOTE: Prior to Build 72 any state that had a value in the Taxable ID field was excluded from the Rate & Boundary Import.

NOTE: If you'd like to remove the tax schedules for a state you can do so using the DZ Remove Tax Schedules window. If desired, the states tax details can also be removed using the DZ Remove Tax Details window.

Please refer to Statewide Exempt Schedules and Statewide Taxable Schedules for more information.

Frequently Asked Questions