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Avalara Help Center

Manage Jurisdiction Overrides

This article applies to:Avalara AvaTax Update

A jurisdiction override changes how AvaTax Update sourcesHoverTT.png tax jurisdictions by allowing you to specify the jurisdictions AvaTax Update uses for tax calculations. For more information about nexus and jurisdictions, see Tell Us Where You Collect and Remit Tax.

Go to Settings > Manage Advanced Account Settings > Manage Jurisdiction Overrides to create a jurisdiction override for an address or a ZIP/postal code.

Deciding when to add a jurisdiction override can be complicated. Some reasons you might add one include:

  • An address doesn't actually fall within the boundary assigned by AvaTax Update
  • You have documentation from the state showing the correct tax jurisdictions and tax rate for an address
  • The sourcing of a transactionHoverTT.png is in a city that exists in more than one county or a county that crosses multiple city and/or special tax jurisdiction boundaries

Some states have complex sourcing rules that affect the jurisdictional assignments and composite tax rate calculation. Tax rates are based on the jurisdictions of the origin address in:

  • Arizona
  • Illinois
  • Mississippi
  • Missouri
  • New Mexico
  • Pennsylvania
  • Tennessee
  • Utah
  • Virginia
  • Ohio

Tax rates are based on a combination of jurisdictions from both the origin address and the destination address in:

  • Texas
  • California

In all other states, the tax rate and tax jurisdictions are based on the destination address.

AvaTax Update won't use a jurisdiction override when processing a transaction if it overrides a state statute or taxation rule. This restriction prevents you from creating an inaccurate tax liability for which you'd be held liable by the taxing jurisdiction. Contact Avalara Support to determine whether a jurisdiction override is necessary.

Because they have certified data that can't be altered without investigation, you aren't able to select states participating in the Streamlined Sales Tax Project (SSTP)HoverTT.png when creating a jurisdiction override. 

All the companies in your AvaTax Update account use each jurisdiction override you add, and each jurisdiction override remains in effect until you delete it or it has expired.

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