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Why is tax calculating lower then expected for Florida?

Overview

I created a credit memo and it is getting a lower tax result than expected.

Environment

Avalara AvaTax

Resolution

  • Florida has a $5000 Surtax Tax cap that is applied per item.
    • When combining the total credit amount  on one line, for an invoice that is greater then $5000, the Surtax Tax Cap will be applied
      • This will cause 1.0% tax to be left out of the tax amount of the credit
  • Change the quantity of each individual line to be less then $5000, to avoid having the Surtax Tax Cap applied
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