Defining Taxes

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Defining Taxes

To define taxes at your property, click Tools > Unit and Rate Setup and select the Taxes, Discounts tab.

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In RezStream Professional, there are two steps for defining taxes:

 

  1. Step 1 - Click here to learn how to define Individual Taxes and Effective Dates
  2. Step 2 - Click here to learn how to define Tax Class Groupings

 

Individual taxes are the standard taxes charged at most properties, for example, city, state, and resort taxes. Tax class groupings are collections of individual taxes that are grouped together so that specific guest charges, for example, lodging, breakfast, or festival tickets are taxed at the correct rate. This section walks you through creating the following individual taxes and tax class groupings.

 

INDIVIDUAL TAXES TAX CLASS GROUPINGS
State - 6.3% Lodging (State, City, and Resort Tax)
City Tax – 3.6% Restaurant (State and City Tax)
Resort Tax – 1% Excursions (State and Resort Tax)
Exempt Tax – 0% Exempt (Exempt Tax)

 

When creating individual taxes, it is a good idea to include an individual tax called “Exempt” with a value of 0 for use in possible tax-exempt situations.


Creating Individual Taxes

Use the following steps for creating the State individual tax of 6.3%.

 

  1. Go to Tools > Unit and Rate Setup > Taxes, Discounts > Individual Taxes and Effective Dates and delete any preset RezStream Professional default taxes listed in the Taxes and Gratuities table by highlighting an individual tax row and pressing the <DELELTE> key on the keyboard. After pressing the <DELETE> key, the following prompt is displayed. Click OK to continue.

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  2. Click the “Add New Tax” button.

  3. Move the cursor to the Description column and enter a name for the first individual tax (State).

    2013-03-18_11_56_16-RezStream_Professional_Help.png

  4. Once you click in the Type heading, a drop-down menu will appear with tax type descriptions to choose from. Select a tax type from the drop-down menu. Most taxes fall into the tax percent category.

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  5. Click the Add New Effective Date button. The effective date defaults to 1/1/2000. The only time the effective date needs to be updated is when a tax increase is being scheduled in advance. For example, if the State tax is increasing to 6.5% on 1/1/2006, this tax increase can be pre-scheduled by entering a second effective date. In our example though, there is no scheduled tax increase. Move the cursor to the Value field and enter the tax percentage (6.30).

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  6. Repeat steps 1 - 4 until all individual taxes have been added. The Exempt tax in the sample below exists for tax exempt reservations and point of sale items that are not taxed.

    2013-03-18_11_57_13-RezStream_Professional_Help.png

Creating Tax Class Groupings

Once individual taxes have been defined, tax class groupings are created and then later assigned to individual items. For example, assume a property sells the following items that are taxed according to the specifics in the table listed below.

 

INDIVIDUAL ITEMS APPLICABLE TAXES
Lodging State, City, and Resort
Restaurant Charges State and City
Wine Festival Tickets City
Hot Air Balloon Rides State and City
Phone Calls State, City, and Resort
Gift Shop Items State and City

 

 

The sample property would define four tax class groupings:

 

  1. Full Tax (State, City, and Resort)
  2. Standard Tax (State and City)
  3. Local (City Only)
  4. Exempt (Exempt Only)

 

Use the following steps for creating the four tax class groupings detailed above.

 

  1. Go to Tools > Unit and Rate Setup > Taxes, Discounts and choose the Tax Class Groupings tab.
  2. Delete all but the last RezStream Professional default tax class groupings by highlighting the tax class grouping and pressing the <DELETE> key on the keyboard. When a tax class grouping is deleted, the following prompt is displayed. Click OK to continue.

    2013-03-18_13_09_55-RezStream_Professional_Help.png

    The last tax class grouping cannot be deleted. Instead, it will be renamed to reflect a tax class grouping at your property.

  3. Change the name of the last default tax class grouping by highlighting the name and typing a new description. In the example below, the Standard tax class grouping is renamed Full Tax.

    2013-03-18_13_10_04-RezStream_Professional_Help.png

  4. In the Available Taxes and Gratuities table, highlight an individual tax (A) that is applicable to this tax class grouping and click the Add button (B).
    2013-03-18_13_10_12-RezStream_Professional_Help.png


  5. Repeat step #4 for each individual tax that is applicable to the tax class grouping being defined. In the “Full Tax” example, the State, City, and Resort individual taxes are added.

    2013-03-18_13_10_24-RezStream_Professional_Help.png

  6. Click the Add New Tax Class button and enter a description for the second tax class grouping, Local Tax.

    2013-03-18_13_10_32-RezStream_Professional_Help.png

  7. Use the process outlined in step #4 above to add the City individual tax to the Local tax class grouping.

    2013-03-18_13_13_58-RezStream_Professional_Help.png

  8. Continue adding tax class groupings and assigning individual taxes associated with each tax class grouping until all tax class groupings are defined. For our sample property, the completed tax class groupings table appears similar to the following images.

    2013-03-18_13_10_42-RezStream_Professional_Help.png
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