Can a Flat Tax Rate Table get the Job Done?

A free white paper by Exactor, Inc.

Tax tables are readily available at nominal fees. Tax rate tables list sales tax rates of all taxing jurisdictions in the United States. These tables, also known as “flat tables”, are easy to use, reasonably priced, and used with zip code information, make looking up tax rates a very simple task. In theory, all that one needs to then do is multiply the tax rate by the transaction amount, and come up with the applicable tax owing. If it were that simple, then why use an outsource sales tax service, such as those provided by Exactor? The straight answer is that sales tax is not as simple as taking a zip code and identifying the matching tax rate. Calculating taxes using this method will generate incorrect results and cause exposure to tax liability. The fact is that not one of these tax rate tables are certified by State taxing agencies under Streamline Sales Tax (SST) projects. State taxing agencies recognize that relying on these tables leads to incorrect results.

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