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Applying sales tax to maintenance - re: new tax laws
I'm looking to see if anyone has addressed this issue and what their approach was.
The new tax laws in many states now requires certain portions of maintenance to be taxed (particularly when you offier software upgrades as part of the maintenance for example). As a general rule, they require that if it can't be specifically broken out then to apply 50% of the state tax rate to the maintenance line item.
Now as far as I can tell, we have set up state tax percentages for each state we do business in and we apply this to the various taxable line items. I can not see anyway of editing this (accounting or sales manager role) so that we can cut the rate by 50% for the maintenance line. The only way I see possible is to create a new tax item for every state applicable called "State-Maintenance".