Is rounding permitted when computing sales tax?
When you compute the sales tax by multiplying the tax rate against the sales price, you should go out to the third decimal place. If the third decimal place is equal to or greater than 5, you should round up to the next cent. If the third decimal place is 4 or less, then you should round down to the next cent. For example, you sell a taxable item for $250 and must charge 8.25% tax. If you multiply the tax rate against the sale price, it is $20.625. Because the third decimal place is a 5, you would round up and charge $20.63. You can also use a rate chart.
When you compute the sales tax by multiplying the tax rate to the sales price, you should extend the amount out to the third decimal place. If the third decimal place is equal to or greater than 5, you should round up to the next cent. If the third decimal place is 4 or less, then you should round down to the next cent. If I do not collect the sales tax or collect an incorrect amount, who is responsible for paying sales tax to the State Comptroller’s Office? As a seller, you are responsible for collecting the tax. Disbursements will remit payment to the State Comptrollers office. If you do not collect and remit the correct amount, Rice may owe any additional tax plus Rice may be assessed penalties and interest. Please notify Disbursements (disbmt@rice.edu) if an incorrect amount is discovered in order that Rice can adjust the sales taxes remitted to the State. Are delivery or shipping charges taxable? Shipping and handling charges are taxable if the charges are associated with the sale
