Taxes

Taxes to be included on customer receipts are set by an Administrator. To set up or review current tax settings:

1. Select the Admin Tab.
2. Select Locations / Taxes / Fuel.
3. The resulting screen, shown below, is where settings specific to locations are made. Select the Taxes button.

Location Parameters

Gross Receipts Tax

On the Location Taxes screen the first section available, shown below, is for setting a Gross Receipts Tax. Gross receipts tax is NOT sales tax. This option is very rarely used, and you should avoid this section completely unless you know without doubt that you pay Gross Receipts Tax.

Gross Receipts Tax

Sales Tax

The next section on the Location Taxes screen is where you set up your Sales Tax rates. This section is shown below. Please click the thumbnail now to open the image in a new window for reference as it is explained. 

Sales Tax Rates

There are three columns for entering tax rates. The first column is meant to be used for your basic sales tax (usually State Sales Tax in the U.S.). 

An individual sales tax rate can be entered for every sales category, and categories that do not apply to your operation can be ignored. The screen shot used as an example in this document has many of the categories removed so the following points can be highlighted:

1. A Short Name should be entered for each tax, along with the text that should appear on receipts when that tax is applied.
2. Certain types of rental flights may be tax exempt at your location. If this is the case, you can designate the criteria for Rental Flight Exemption. (MyFBO.com makes no recommendation on which settings you should use. Please discuss this with your tax consultant.)
   • None
   • All Students
   • Primary Students 
   • Student Dual
   • All Dual 
   • All Students & Dual
   • All Instructional

   Note: For a flight to be designated as a "student" flight, the student flag must be active in the customer record. For a flight to be designated as "instructional", the reservation should be made as an instructional reservation. A "dual" flight is any rental flight with a staff pilot and a customer pilot, not to be confused with scenic or charter flights. The exemption settings only apply to rental type flights.

3. If your operation includes leaseback aircraft for which you wish to always collect sales tax regardless of rental tax exemptions, select Yes here. (MyFBO.com makes no recommendation on which settings you should use. Please discuss this with your tax consultant.)
4. MyFBO includes two standard categories that appear during receipt preparation for general merchandise. This makes it easy to designate one for taxable merchandise and the other for non-taxable merchandise.
5. If your organization sells fuel, the tax rate can be set here. Notice that the third tax column includes the options of Percent or Per Unit. These options only apply to the third column fuel field. The Per Unit option is used in the case where your municipality collects a flowage tax -- where you pay a set amount per gallon pumped. 

If your organization sells more than one fuel type and tax rates are different for each type, the rate should instead be input during the setup of each fuel type.  For more information, please see: Fuel Management Overview. 

Additional Taxes

There are two additional columns that can be used for taxes from other taxing entities - often for county and municipal taxes or airport fees. These columns are not active by default. If you need to use them, you must take action at the bottom of the Location Taxes screen to activate / install them. This is a simple process of clicking a link as shown below. 

Setting Additional Sales Tax Fields

Once tax rates have been entered in the location parameters for each of your locations, the online system automatically computes and assesses the taxes you have specified. Taxes charged are included in the details of every transaction, on every receipt, on customer statements, and on your monthly bills (if you use that feature). Tax is also included on numerous financial reports. Perhaps the most important is Revenue by Source Report present on the Financial Tab / Time and Revenue Menu. This report can be used as the basis for your periodic reports and payments to your taxing entities.

03/28/11 cli