Why Tax Rates Might Change in the New System

We have received messages from a few partners concerned about tax rates changing in the new system. This was something we expected during this launch. Read on to learn the details.

Here are a few important details:

  • Reservation prices, including tax, are locked upon import. These will not change, unless you open up and edit a reservation then save your changes.
  • If you open up an imported reservation, then make changes and save the reservation, you will see an updated tax total display. You only need to collect payment for the total displayed in the new system.
  • If you do not make any changes to an imported reservation, then the tax rate will not change.

Why are you seeing a new tax rate in this new system? We are now generating our tax rates from TaxJar.com. They deliver tax rates to our system based off of your customer’s zip code. They will deliver the lowest applicable tax rate for that zip code, as is the current law when populating tax rates off 5-digit zip codes. If you want to learn more about this TaxJar policy, check out their blog: Why 5-Digit Zip Codes Don’t Always Return Correct Sales Tax (And That’s OK).

We are working to automate this feature further, where TaxJar verifies the customer down to their specific 9-digit (ex. 70065-1234) zip code.

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