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Single Article Tax of Tennessee in Magento

Single Article Tax of Tennessee in Magento

I want to Implement Single Article Tax of Tennessee in Magento.

 

DETAILS

There are only 3 products that we have that would fall into this category and the only time THESE 3 products would fall into that category is if they are sold to a customer in the state of Tennessee. The single article tax amount for TN is $1,600.00 which is 9.75%, the remaining amount would only be taxed at 7%.

The three items would be SKU# 126 $3,995.00 SKU# 146 $5,495.00 SKU# 156 $6,295.00

According to the TN Single Article Code, we can only charge our state and local tax (9.75%) on the first $1,600. Anything thereafter is charged only the state rate of 7%.

For example, on a 126, the calculation would be:

$3,995, less $1,600 comes to $2,395.00 The first $1,600 is taxed at regular rate of 9.75 percent, which comes to $156.00

The remaining $2,395 is taxed at the rate of 7%, which comes to $167.65

Total Tax is $323.65

 

Note: I want to setup this in magento tax. Can anybody help me?

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1 REPLY

Re: Single Article Tax of Tennessee in Magento

Magento doesn't support such tax settings by default, you will have to customize tax model for this.

Here is what I will probably do

Create a special rate rule for lcal tax(9.75%)before $1600 with a special id (say 'artical-tax-before') for tn

Create a special rate rule for state tax(7%) after $1600 with a special id (say 'artical-tax-after') for tn

then find out all the tax calculation snippt in

Mage_Tax_Helper_Data

 

    protected function _calculatePriceInclTaxWithMultipleRates($price, $appliedRates)
    {
        $calculator = $this->getCalculator();
        $tax = 0;
        foreach ($appliedRates as $appliedRate) {
            $taxRate = $appliedRate['percent'];
            $tax += $calculator->round($price * $taxRate / 100);
        }
        return $tax + $price;
    }

Mage_Tax_Model_Sales_Total_Quote_Tax

 most the $appliedRates for loops

 

and

Mage_Tax_Model_Sales_Total_Quote_Subtotal

 most of the $appliedRates for loops

 

 in the loops check if $appliedRate['code'] is 'artical-tax-before', use min($price, 16000) for tax calculation, or if is 'artical-tax-after' use max($price - 16000, 0) for tax calculation