Knowledgebase: Tax

Collecting Tax for Home Rule States with your Avalara Integration

 

Certain states in the US have either cities, counties, or special tax jurisdictions with self-administered local tax authorities. These authorities collect tax independently from their respective states.

These states are known as Home Rule States and include the following:

  • Alabama
  • Alaska
  • Arizona
  • Colorado
  • Idaho
  • Louisiana

Tip
Check with your accountant or with local tax authority to see if these regulations apply to your business.

When you set up Avalara on your Shift4Shop store, you are asked for your location to complete the process. This onboarding process automatically sets up the state location in your AvaTax module.

However, to collect tax in Home Rule States, you will need to provide more specific information about your tax jurisdiction, in addition to the information you provided during the onboarding process. This additional process for Home Rule States will need to be done directly in your Avalara AvaTax module.

Please refer to Avalara's documentation for the navigation steps required, but generally this will be done in their "Where you collect tax" section. If any of the states listed above are in your AvaTax module, you will see a similar view as shown here in this example for Alabama:

Simply click on the "Add local collection authorities in [state]" link to set up these additional paramaters.


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