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What is the highest composite rate Avatax will calculate in Texas?

Overview

I received a call from the Texas Comptroller's office yesterday informing me that we should not be collecting more than 2 percent combined local sales and use taxes, and also that the heirarchy should be: 1. City, 2. County, 3. Special purpose districts, and 4. Transit tax. The total taxes collected cannot go over 8.25%

Environment

Avalara Avatax

Resolution

  • The current engine behavior is to calculate a total of 8.25 percent in Texas at the highest. It is possible to see higher rates if you have created rate override rules etc.