The tax details imported from the City.txt file of the Rate & Boundary Database represent taxes imposed by city governments and do not apply beyond legal city limits.

Whenever a city tax detail from the City.txt file is added to a Zip Code Tax Schedule DynamicZip creates an alternative out-of-city-limits tax schedule without the city tax detail.

The tax details imported from the Local.txt file of the Rate & Boundary Database represent taxes imposed by localities, such as rapid transit areas, school districts, etc. that impose sales & use taxes of their own, in addition to those imposed by counties and cities. Local taxes can apply to whole counties, or just to specific cities. Certain cities may have a local tax of their own, while still falling under the jurisdiction of a county-wide local tax.

The Local.txt file contains an Inout field that indicates whether the city local tax applies:

• Inside city only.
• Outside city only.
• Both inside and outside city.

Whenever a city local tax detail from the local.txt file that does not apply “both inside and outside city” is added to a Zip Code Tax Schedule DynamicZip creates the appropriate alternative out-of-city-limits tax schedule.

In addition some cities have a special override state or county tax rate. In these cases DynamicZip creates the appropriate alternative out-of-city-limits tax schedule with the standard state and/or county tax rate.

Glossary