AG Taxation Feature

The AG Taxation Feature allows the taxation of items to automatically apply the desired non-tax status to selected agricultural items.

Turn on the AG Taxation Feature

Go to System > Company Setup > Inventory Page 3 and check the AG Taxation Feature. Once completed, at each workstation, exit TransActPOS (Exit, Exit) and then return to the TransActPOS to pickup this company setting.
AG Taxation Feature
 
 

Company Setup - AG Taxation Feature set to Not Option

Option Turned Off - Default

 System > Company Setup > Inventory Page 3 > AG Taxation Feature
When the Ag Tax Option is unchecked, items are indicated as Taxable within the General tab of the item Ag Tax Items (Agricultural) which are non-taxable for Taxable customers with a non-blank Tax ID.
Customer
Taxable Customer
Non-Taxed Customer
Taxable Customer with Tax ID
Item
Taxable Item
Taxable Item
Taxable Item
Results
Tax applied to Item
Tax NOT applied to Item
Tax IS applied to Item
Comment
 
 
If the item is determined to be a non-taxable item based upon the Ag taxation rules and the customer's use of the item, the user selects Modify Tax (F5) to change to AG Tax (non-taxed).
 

Taxed Item with selected Taxed Category of TAX

Non-Taxed Item with selected Tax-exempt Food

AG Taxation Feature
 

Company Setup - AG Taxation Feature set to Non-Taxed

When the Ag Taxation Feature is checked, items are identified as Ag Tax Items (Agricultural) which are non-taxable for Taxable customers with a non-blank Tax ID.
Customer
Taxable Customer
Non-Taxed Customer
Taxable Customer with Tax ID
Item
Taxable Item
Taxable Item
Taxable Item
Results
Tax applied to Item
Tax NOT applied to Item
Tax IS NOT applied to Item automatically
 
 
 
If the item is determined to be a Taxable item based upon the AG taxation rules and the customer's use of the item, the user selects Modify Tax (F5) to change to Taxable Item.
 

AG Taxed item with optional Non-Taxed

AG Taxation Feature
 
1

Choose the AG Tax option
from the available listing

1. Choose the AG Tax option from the available listing
Select the AG Tax option to reveal the Tax and Non-Taxed option within the taxation structure.
AG Taxation Feature
2

Selectable Taxable Drop Down

AG Taxation Feature
Choose the appropriate Taxable tax from the available listing.  The Taxable listing typically only contains a single entry, TAX.  This listing of taxable items is supported within System > Company Setup > Sales Tax Menu > Taxable Item Types.
3

Selectable Non-Tax Drop Down

3. Selectable Non-Tax Drop Down
Choose the appropriate Non-Taxable from the available listing.  The Non-Taxable listing will contain multiple non-tax items.  In the case of the AG tax option, select the AG Tax item.  The Sales Tax report will reflect the sales which have been automatically set to AG tax within the Sales and Use tax report within the AG summary and detail report.
 
The listing of non-taxable items is supported within System > Company Setup > Sales Tax Menu > Non-tax Types.
 
 

Company Setup - AG Taxation Feature set to Select Tax Rate

Set up Taxable Item Type for AGTX

Establish Tax rate for AGTX

 

 

Apply AG Tax to the item

  • In this example, change the Tax Type to "AG Tax" as seen within "1".
  • Establish a "normal" tax rate as seen within "2".
  • Select the newly created "AGTX" that contains the new tax rate created within the step above (

    Establish Tax rate for AGTX

    ).
 
AG Taxation Feature
 

Apply the two requirements of AG Tax to the customer account

AG Taxation Feature

Change the Descriptor to
"Farmer" (Required)

1. Change the Descriptor to "Farmer" (Required)
Selecting "Farmer" one of the two required components of the AG Tax Feature.
AG Taxation Feature

Enter Non-Blank
Tax ID (Required)

1. Enter Non-Blank Tax ID (Required)
Enter a non-blank entry into the TAX ID field to activate the AG Tax Feature.  Depending upon the state, the farmer may have an assigned Tax ID, enter that value here to assist with reporting within the Sale Tax Report.
If the customer does not have a Tax ID assigned, enter "AG TAX", for example.
 

Sample Sale to Sample Customer

AG Taxation Feature

1

Customer Descriptor = "Farmer"
and non-blank Tax ID

1. Customer Descriptor = "Farmer" and non-blank Tax ID
 
2

Selected Item with AGTx Rate

2. Selected Item with AGTx Rate
 
3

Resulting in expected tax rate

3. Resulting in expected tax rate
 
 

Sales Tax Summary Report for the above example

AG Taxation Feature

Sales and Use Tax Reporting

The TransActPOS > Reports > AR or IC,  Sales Tax Report provides detailed reporting to reflect the Ag taxation instances.