If you use the Trade-Ins tool in the Register to accept traded inventory on purchases, your state might offer tax credits on that expense, meaning the item being traded for would have its tax reduced based on the item being traded. Please read further to find out more.
Seven States Do Not Allow Trade-In Tax Credit
The following 7 states, as of 9/2020, do not offer tax credit on trades*:
*Source: Chron.com article on How Does Sales Tax Work on Trade-Ins. And Illinois was added to the list as of 1/1/2020, according to separate sources.
In the following 3 states, it is not an issue, as they do not charge sales tax:
So if your state is not listed above, you are able to get the taxable amount in a transaction reduced by the amount of the trade-in item. The system has been coded already for states that allow this tax reduction, so it will already be there for you and functioning if your state offers the tax credit.
If you have questions please give us a call at 385-404-6200.