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How can we force the Florida county surtax CAP to not apply?

Overview

You want to override the tax cap of $5,000 on county tax in Florida so that the county tax applies to the full value of your sale.

Environment

AvaTax

Resolution

  • By default, AvaTax calculates the Florida Discretionary Surtax tax at the item level.
  • 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 doesn't have a single item valued over $5,000, so the Florida Discretionary Surtax Cap isn't 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.
  • Avalara suggests to call the state to get a determination before changing the way our service calculates by default. For more information, please see the Florida Department of Revenue.
  • If needed, map an AvaTax tax code to an item to make county tax calculate on the whole item value. Rules FL Cap Eliminate is a rule import you can use to create this special behavior for a particular tax code. Open the spreadsheet and change the TAXCODE (field K) to the tax code you want to use.
  •  If you update the system so that we apply the county tax rate to the entire item value, both of the example invoices could have the county tax rate applied to the entire value.