Silent Auction Protm allows you to calculate and charge tax on auction items based on your local sales tax rate. Tax is charged only on those items that you mark as taxable in the donations entry form.
When entering a donation, the default is that items are Taxable and are not a Gift Certificate. If you mark an item as a gift certificate, or print out a gift certificate, Silent Auction Pro will automatically mark that item as non-taxable since most merchants will charge tax when the gift certificate is redeemed. In the donations form you can mark an item as taxable and also a gift certificate if you so choose.
Note: Our interpretation of the tax code suggests that you must charge tax only on physical items that are sold at your auction. Please consult with your tax professional for more information on what types of items you should be charging tax as the tax code is different in different states.If an auction item consists of more than one donation and contains a taxable item, Silent Auction Pro calculates the tax due on that auction item as a percentage of the final bid amount equal to the value that item contributed to the overall auction item's value. For instance, consider two donations: D1 valued at $40 and D2 valued at $60 that are combined into one auction item A1. Let's assume that D2 is taxable and that your local tax rate is 7%. If that auction item sells for $80 then the tax calculated by Silent Auction Pro on auction item A1 would be:
Final bid * (Value of D2 / Total Value of the Auction Item) * Tax Rate = $80 * 60% * 7% = $3.36
Note: The Group Administrator sets the local tax rate by Editing the group information from the Notes: