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Self-contributing authorities example

You can include the originating authority as a contributing authority for itself.
For example:
  • A telecommunications product on an intrastate transaction in New York, NY includes the following taxes:
    • 4% for NY - STATE SALES/USE TAX
    • 4.5% for NY - NEW YORK CITY, CITY SALES/USE TAX
    • 0.375% for NY - METROPOLITAN COMMUTER TRANSPORTATION DISTRICT (BRONX), DISTRICT SALES/USE TAX
    • 2.35% for NY - NEW YORK, UTILITY EXCISE TAX
    • 2.5% for NY - STATE EXCISE TAX (SECT 186-E)
    • 0.595% for NY - MTA SURCHARGE (186-C)
  • From the list of authorities above, the following 3 are set as contributing authorities for all 6 of the listed authorities:
    • 2.35% for NY - NEW YORK, UTILITY EXCISE TAX
    • 2.5% for NY - STATE EXCISE TAX (SECT 186-E)
    • 0.595% for NY - MTA SURCHARGE (186-C)
  • For each of the 6 authorities, an initial calculation occurs to determine the taxable basis, taking the 3 contributing authorities into account. For a $1000.00 gross amount, adding the contributing authorities results in a taxable basis of $1054.45:
    • 1000 * 2.35% = 23.50 (NY - NEW YORK, UTILITY EXCISE TAX)
    • 1000 * 2.5%= 25.00 (NY - STATE EXCISE TAX (SECT 186-E))
    • 1000 * 0.595% = 5.95 (NY - MTA SURCHARGE (186-C))
    • 1000 + 23.50 + 25.00 + 5.95 = 1054.45 (New taxable basis)
  • After the initial calculation occurs, the final taxes are calculated based on the new taxable basis:
    • 1054.45 * 4% = 42.18 (NY - STATE SALES/USE TAX)
    • 1054.45 * 4.5% = 47.45 (NY - NEW YORK CITY, CITY SALES/USE TAX)
    • 1054.45 * 0.375% = 3.95 (NY - METROPOLITAN COMMUTER TRANSPORTATION DISTRICT (BRONX), DISTRICT SALES/USE TAX)
    • 1054.45 * 2.35% = 24.78 (NY - NEW YORK, UTILITY EXCISE TAX)
    • 1054.45 * 2.5% = 26.36 (NY - STATE EXCISE TAX (SECT 186-E))
    • 1054.45 * 0.595% = 6.27 (NY - MTA SURCHARGE (186-C))
    • 42.18 + 47.45 + 3.95 + 24.78 + 26.36 + 6.27 = 150.99 (Total tax)

This article applies to:

  • Product: ONESOURCE Determination, ONESOURCE Indirect Tax
  • Subject: Authorities