California 1 percent (1%) Lumber tax

This article provides instruction and information on setting up California 1 percent (1)% Lumber tax.

• Creating a department
• Assigning the department
• Assigning tax definitions

Creating a department

1. In Paladin, from the main menu, select File >Setup.
2. Select the Dept tab.
3. Under the ID and Name field, click New.
4. In the Name box, enter LUMBER.
5. Enter a number in the Department label number box. For this article, 69 is used.
6. In the field under the Name box, make sure all the non-taxable boxes are unchecked.
7. Click Save.

Figure 1: New Department setting

8. Go through each of the remaining active departments and make sure all have the City non-taxable box checked.

Figure 2: City non-taxable checkbox

9. Click Close.

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Assigning the department

1. In Paladin, on the top ribbon, select the Inventory module.
2. Select the General tab.
3. In the Item Information pane, assign the newly created LUMBER department code to all qualifying taxable lumber items by selecting the department you created from the Dept: list.

Figure 3: Department assigned

4. Click F12 Save, then exit out of the Inventory module.

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Assigning tax definitions

For California Lumber tax, only a city tax needs to be created.

1. In Paladin, from the main menu, select File > Setup.
2. Select the Taxes tab.
3. In the Tax Definitions pane, click New.
4. In the Name box, enter LUMBER.
5. Enter 1 in the Tax % box.

Figure 4: Tax Definitions/LUMBER

6. Click Save.
7. Under the Tax Settings pane, set the Default City tax to LUMBER.
8. The state of California requires that the lumber tax amount be shown on the receipt. Therefore, check Separate Tax Levels on Invoices.

Figure 5: Tax Settings/Default city tax

9. Click Close. 
10. The Confirm Tax Changes window opens.

Figure 6: Confirm Tax Changes window

11. Click Yes.

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