When should I use statewide taxable & exempt schedules?

By using Statewide Tax Schedules you can specify a single taxable and a single exempt tax schedule to be used for all shipments into a particular state. This selection is made by entering a tax schedule ID in the Taxable ID and Exempt ID fields of the DZ State Setup window. If desired, you can clear the entry(s) to revert back to using Zip Code Tax Schedules.

As of DynamicZip Build 74, statewide tax schedules can be automatically used for single rate states. See Allow use of Zip Code Tax Schedules for single rate states for more information.

• Fewer records in the tax setup tables. Besides saving hard drive space, this will speed up several processes involving these tables. Perhaps the most significant processes affected are table maintenance, backup procedures, and the rate & boundary import.
• Easy to setup and maintain.
• Easy way to handle the states not included in your sales and use tax database subscription.

• You will be unable to identify taxable or exempt sales made into specific tax jurisdictions within the state. For multi-rate states, you need to identify sales made into specific tax jurisdictions. In this case you should use the Zip Code tax schedule rather than the Statewide Tax Schedule.

Related Links:

How does DynamicZip select tax schedules?
How do I handle the states that I want to exclude from taxation?
How do I begin charging sales tax in a previously untaxed state?

FAQ