Colorado Tax Rate Being Applied

Hi @simplevendor

Can you please follow this guide to remove the incorrect and add the correct tax rate and see whether the issue gets resolved or not?

Let us know how that goes. Looking forward to hearing from you soon.

I ran into this as well as a Washington state retailer. See here: Colorado Sales Tax added | www.remarpro.com. The suggested fix here by Shameem worked for me; however, you indicate that TaxJar is overwriting the 0% rate so this would seem to be something you need to address in TaxJar.

Note the reason ANY tax rate calculator wants to collect sales tax in Colorado is because they passed this requirement for out of state retailers who ship products to Colorado. If your sales are less than $100,000 per calendar year, then you are exempt from collecting and paying Colorado sales tax. See here: Out-of-State Businesses | Department of Revenue – Taxation (colorado.gov)

I removed all rates under “Standard” tax rates like the guide suggested. When I then go to checkout and enter in a Colorado shipping address, it calculates a tax amount and saves a tax percent to the “Standard” tax rate area.

Where does WooCommerce get the data for if a store sells over $100,000 in revenue? Looking at our orders, we are nowhere near the $100k limit.

Yes I also deleted all the rows under “Standard” tax rate and created a single row. That row had US – CO – all zips and all cities – 0% for the tax rate – and a priority of 100. When I go to checkout and enter a Colorado shipping address, the logs show that the rate was zero, then it updates the row with the returned tax rate, and charges tax in the cart. Going back into the “Standard” tax rate table, that 0% now shows the returned tax rate.

The only thing I can guess is the shop address isn’t completely entered under WooCommerce > Settings > General, only the state and zip code are entered. Does WooCommerce Tax need the full address or is just state and zip code work? It has worked fine in the past, but just now seems to be calculating Colorado rates.

Thank you for reaching back, with further details on this @simplevendor .

To get an idea of how your site is configured, and investigate further, could you please share the following with us:

• a sample address, for input at Checkout
• the site’s URL
• screenshots of how Taxes are set up

If you don’t already have a screenshot service installed, https://snipboard.io is a good option – for uploading it there, and sharing the link here afterward.
There is also a walkthrough guide here: https://en.support.wordpress.com/make-a-screenshot/

We look forward to your response. In the meantime, please let us know if you have any further questions or concerns.

1. The checkout url is here: https://www.geosreef.com/checkout/ You will need to add a product to the cart first.
2. The main site url is https://www.geosreef.com

Thank you for reaching back, clarifying things further @simplevendor .

It appears that changing the Priority to 1 (from 2 that now is), in the standard tax rate that appears in this screenshot will result in the desired 0% tax for Colorado.

I trust that points you in the right direction, but if you have more questions, let us know.

We’re happy to help.

I just ran two tests, one with the Priority set to 0 and again with the Priority set to 1. In both cases the checkout rate that is returned overwrites the 0% that I enter into the admin area and the tax is calculated in the cart.

Here is how its set currently

Hi @simplevendor

It seems like the TaxJar API is overriding the 0% tax rate you have set manually. TaxJar calculates taxes based on the nexus of your business. If you have a nexus in Colorado, TaxJar will calculate taxes accordingly.

To resolve this issue, you should ensure that you’ve correctly set up your nexus addresses in your TaxJar account. If you don’t have a nexus in Colorado, make sure it is not listed in your TaxJar nexus settings.

I hope this helps! Please let us know how it goes or if you need further assistance.

We do not have a nexus in Colorado, only Florida. We also never setup a TaxJar account directly, we just installed the Woocommerce Tax plugin and connected it to our WordPress.com account.

Hi @simplevendor

More and more, it sounds like the situation described in this thread is documented in here, in the documentation — where taxes appear to not be calculating as expected?

I hope this is helpful! Please let us know if you have any further questions about this matter, or if we misinterpret your concern in any way. We will be happy to help you further.

Hi @simplevendor

I’m marking this topic as “resolved” due to recent inactivity. If more assistance is needed, feel free to post back here or open a new topic.

Thanks!