Overview
This demonstrates how to set up and calculate sales tax on a title charge based on the geographic location of the property address on the file or a partner’s address. This tax can be added to the title charge on which it’s calculated or to a separate line.
Create the Tax Line
This step is necessary for cases where the sales tax must be disclosed on its own, separate line. If this is not necessary, skip this step.
Admin/General Setup/Settlement Type Defaults
- Highlight the Miscellaneous Title Charges line and click Copy.
- Find the copied line (“Copy – Miscellaneous Title Charges”) and click Edit.
- Rename the Settlement Statement Line to what should be displayed on files and closing documents.
- If any properties for this line should be different than what’s used on Miscellaneous Title Charges, navigate to the Property tab and edit as needed.
- Click Save.
Add the Tax Properties to the Taxable Lines
Admin/General Setup/Settlement Type Defaults
- Highlight a settlement line that should be taxed and click Edit.
- Click on the Property tab and Add the following properties:
- SalesTaxAmount
- This is most useful if the tax is going to be calculated and added to the same line and may not be necessary if the tax is going to be calculated and added to a different line. The way the tax should be displayed depends on state and/or underwriter requirements.
- Click Show to display the tax amount when the line is highlighted.
- Click Enable to allow the tax amount to be edited.
- SalesTaxAmount
- SalesTaxSettlementTypeID
- This property is only necessary if the sales tax needs to be disclosed on a separate line. If the sales tax is being added to the same line on which it’s calculated, this property doesn’t need to be added.
- Set the Default dropdown to the settlement type created in the first step.
- SalesTaxCalculation
- Click Show if the user should be allowed to select a partner whose location will be used to calculate the tax when the line’s Total amount is changed. If Show is not enabled, the tax will be calculated based on the selected defaults and the user will not be able to make any selections on files.
- Click Enabled to calculate the tax based on the selected options.
- Select a Partner and check Based on Partner Location to default the tax to be calculated on the selected partner’s address. If this option is not selected, the tax will default to calculating on the property location.
- Choose the desired option in the Base Sales Tax On section, which tells Resware where to look for the sales tax percentage.
- Geographic Setting Defaults uses the defaults set in Admin/General Setup/Geography.
- Both City and County Tax will add the city and county tax percentages together and calculate the tax based on the total of the two.
- Only City Tax will calculate the tax based on what is set on the city.
- Only County Tax will calculate the tax based on what is set on the county.
Set the Tax Rate(s)
Admin/General Setup/Geography/Counties
- Select the State.
- Highlight the county where the tax is assessed and click Edit.
- Enter the Tax.
- Click Save.
Admin/General Setup/Geography/Cities
- Select the State.
- Highlight the city where the tax is assessed and click Edit.
- Enter the Tax.
- Click Save.
Example on a File
Settlement/Postings
- If a settlement line has the SalesTaxSettlementTypeID set, the tax will be calculated and the tax amount will be added to a separate line.
- If a settlement line has SalesTaxAmount and does not have SalesTaxSettlementTypeID, the user will be asked if the sales tax is included in the total when a new total is added to the settlement line.
- If the user selects Yes, additional tax will not be calculated.
- If the user selects No and the Enable option is selected on the SalesTaxAmount property, the user will be asked how to calculate the tax.
- If the tax should be calculated based on the property address, select Calculate Sales Tax on Property Address.
- Click Save.
- If the tax should be calculated based on a partner’s address, select Calculate Sales Tax on Selected Partner Address and select a Partner from the dropdown.
- If the user shouldn’t be given the option to make this selection and the default selection should always be used to make the calculation, do not select Show on the SalesTaxCalculation property.
- Click Save.
- The Total will be updated to include the calculated amount of sales tax.
- The Sales Tax field will display the amount that is the tax.
