• In Tennessee, effective July 1, 2002, an additional state sales or use tax applies to items sold in that state. At the time of this writing, the rate is an additional 2.75% on any single article sold, from $1,600.01 up to and including $3,200.00.
• We create our tax details and schedules from the information in the CCH ZIPsales Database. Due to its architectural limitations, this database can only contain one state tax detail. As a result, the Tennessee Single Article Tax cannot be imported automatically.
• To correctly assess this tax, an additional state tax detail must be manually created and added to Tennessee's taxable sales or use tax schedules.

NOTE: As of Build 72 this workaround has been automated. The Tennessee Single Article Tax will be automatically added during the Rate & Boundary Import if the Create TN Single Article Tax option is selected in the DZ State Setup window This option is only visible when the state of TN is selected. As of Build 72 this option is automatically selected when the TN state setup record is created. This option will also be automatically selected when upgrading to Build 72 from a prior build. If you previously manually created this tax detail, you should open the DZ Tax Detail Supplement window select the record for the manually created detail and set the Import Status to Update Both to prevent double charging for this tax.

Complete the following steps to collect this Tennessee tax if you are running a version of DynamicZip prior to Build 72.

1. Select Tools > Setup > Company > Tax Details, this will open the Tax Detail Maintenance window
2. Enter the Tax Detail ID of TNSSTENNESS002. (Increment the 002 as needed to get an unused Tax Detail ID.) * In the Description field, enter TENNESSEE State Single Article. Enter the percentage of 2.75%.
   • In the Type field, select Sales for tax on sales or Purchases for tax on purchases.
   • In the Taxable Amount section, enter $1600.01 as the minimum amount taxable and $3200.00 as the maximum amount taxable.
   • In the Include field, select Amount within Range.
   • In the Qualifiers field, select Unit Amount.

1. While the Tax Detail Maintenance window is open select Additional > DZ Tax Detail Supplement, this will open the DZ Tax Detail Supplement window.
   • In the Authority field enter State.
   • In the Administrator field enter Tennessee: State.
   • In the State field enter TN.
   • In the Geocode field, enter 47.
   • Set the Import Status to Update Neither.
2. Click Save on both of the above windows.

1. Select Tools > Utilities > DynamicZip > Modify Tax Schedules, this will open the DZ Modify Tax Schedules window
   • Set Select Schedules to “by Description”.
   • In the Starting Description field enter TN.
   • In the Ending Description field enter TNZ.
   • Select Limit Schedules To Taxable.
   • Select the checkbox to Limit to Range of Details.
   • In the Starting Tax Detail ID field, enter the Tax Detail ID that you used for the new TENNESSEE State Single Article tax detail created above.
   • In the Ending Tax Detail ID field, enter the above Starting Tax Detail ID. ( This will restrict the process to adding that single tax detail to all of the tax schedules whose description starts with TN and which is not an Exempt Tax Schedule.
   • Click the Preview button for a report of what will happen if you choose to Add.
   • Click the Add button to complete this process.

• When creating the exempt tax detail, append an X to the end of the Tax Detail ID used for the taxable detail created above.
• Be sure to set the Percentage field to zero.
• When adding tax details to the tax schedules Select Limit Schedules To Exempt.

• When creating the purchase tax detail, you will need to increment the ID to get an unused Tax Detail ID.
• Be sure to set the Type field to Purchases.

Set up in this way, you will still be able to import the ZIPsales Database for Tennessee without losing your changes. However, the custom Tennessee detail will not be imported when you import the ZIPsales Database. Therefore, you will need to maintain the Tennessee Single Article Tax rate detail(s) by hand should any changes be made to the tax (such as the tax rate).

Known Zipsales Database Issues