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Why is my transaction not calculating Florida discretionary tax?

Overview

My Customer is claiming that discretionary tax applies and only the first 5000 pieces should be taxed, but I know there are specific rules and I don't think it applies in this case

Environment

Avalara Avatax
Florida

Resolution

By default, Avalara AvaTax will calculate Florida Discretionary Surtax tax at the item level and not the invoice level, as this is the general rule when calculating this tax for Florida.

  • For Example: You sell 2,000 1 pound bags of rice for $3 each. Invoice shows Qty of 2,000  at $3 each. This invoice does not have a single item valued over $5,000, so the Florida Discretionary Surtax will not be applied.
  • You sell a pallet of 2,000 pounds of rice for $6,000. Invoice shows Qty of 1 at $6,000 each. This invoice has a single item valued over $5,000, so you may see that the Florida Discretionary Surtax is applied and that the county tax rate is only applied to the first $5,000 of the line item.
  • This is directly affected by the quantity of the line item itself as well.
 

 


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