We created an item for people to purchase raffle tickets for a local fundraiser. Since it is a donation, they are nontaxable. However, I have a customer who just purchased tickets and they were charged tax. How do I change this so these items do not get taxed?
The way to do this is to create a department for these and assign the product to that department.
You can then make that department non-taxable in Store Manager by going to WEBSITE>Setup>Sales Tax.
You can add a tax rule by hitting "Add" and filling in the following fields.
- State - the state that you want this rate applied to. (You have to make one for each state you collect tax for.)
- Department - the department you want to make non-taxable. (Choose from the drop down.)
- Tax Code - create a name to differentiate it from the others.
- Tax Rate - the percentage to be applied to this department. (In this case, zero.)
- Start and End date.
- Then hit Update.
Now any products in that department will not be charged tax at checkout.