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MJ Freeway allows you to enter multiple tax rates into your system, or turn taxes off entirely.
Tax Rates in MJ Freeway apply to product categories. This means different items in your system can carry different tax considerations. Tax Rates can also be specific to an individual ‘Location’ within GramTracker. This means that if you have multiple stores, or drivers, attached to one MJ Freeway url, each location can have unique Tax Rates.
Your system will start with one sample tax rate. This can be deleted or edited.
Name – This will be the name of the Tax Rate that shows on reports and receipts.
Rate – This is a decimal representation of the desired Tax Rate percentage, 6% in the example above.
Product Categories – Highlight the product categories to which this tax rate will apply. In the example above, all categories will be taxed. In the example below, any products added to the ‘Services’ category will not receive any tax at the point of sale.
*Applicable Location – For multi-location instances, check the box next the any location that will receive this Tax Rate of 8.75%.
You may also add as many tax rates to the system as desired. One common example, pictured above, displays City and State Tax on separate lines.
To edit or create Tax Profiles, navigate to Admin, Taxes, Tax Profiles. (Note: This article does not revisit Tax Rates, as their creation and modification are unchanged)
This page will display your existing Tax Profiles (example shown below) along with links to create, edit, or delete existing profiles. Due to its specialized nature, Default cannot be deleted.
Upon clicking Edit or Add, you will see a prompt to enter a Name for the Profile, add any applicable Rates to the Profile, and select any Locations to which this Profile will apply. Upon adding a Rate, an additional dropdown will appear to let you select whether this tax rate observes or ignores tax exempt status. Once the Profile is configured, click Save.
Note that a profile can be saved without a Location. This may still be used for a patient-specific override, detailed below.
Tax rates are treated very differently by different organizations.
First, you will need to think about how your organization wishes to treat taxes.
Common tax methods include:
For some states, such as Michigan, you may remove the tax rate entirely. This can be done by deleting the existing tax rate in the system.
Some organizations build taxes into the prices/contribution amounts of their products, rounding off the final price/contribution to whole dollar amounts. For this, you will need the accurate tax rate in your system.
Some organizations place the tax on top of the existing price/contribution amount, similar to a typical retail or pharmacy establishment. For this, you will need the accurate tax rate in your system.
By default, GramTracker begins with a Tax Rate of 6%, which is likely not accurate for your location. We will need to edit this tax rate to make certain it is accurate. You may also notice that the “Concentrates” category we added previously does not appear in the list of taxed categories. We will need to add this to the Tax Rate as well.
Most organizations pay multiple types of tax, such as City, State, and/or additional local taxes. Some of these taxes may apply to all items, some taxes may apply only to certain types of item. GramTracker allows you to customize your taxes for your region.
For this example, we will state that we have three tax rates. You may substitute your real tax rates. If you do not know your tax rates, the below link can help you find them.
We will assume a 2.5% city tax rate applied to all goods.
We will assume a 3.2% state tax rate applied to all goods.
We will assume a 2% tax rate on all goods containing Medical Marijuana.
First, we’ll edit the existing tax rate to serve as our city tax. Click the “Edit” button next to the sales tax.
For the example, I will change the Name of the Sales Tax to “City Tax”
Next, I’ll change the rate to the decimal expression of the tax rate.
Note: This needs to be the decimal expression. Typing in “2.5” here would result in a 250% tax rate.
Finally, I will add the “Concentrates” category, and remove the “Services” category from this tax rate.
This list performs differently than most other forms in GramTracker, simply clicking on the “Concentrates” category will select only that category, de-selecting all others.
To add “Concentrates” to our list, you will need to hold the Ctrl or Option key on your keyboard while you click.
You will need to hold the same key while you click to de-select the “Services” category from this list as well.
Once completed, click “Submit” and you will be returned to the Tax Rates page.
Next, we’ll need to add our additional Tax Rates.
We can do so by clicking the “Add a tax rate” link below the existing tax, and filling out the form the same as we did before.
Note: To faster select all of the categories in the list, you can click on the category at the top, then scroll to the bottom of the list, and hold shift while clicking. This will select everything between the two values you’ve clicked.
Make sure to hold control/option and click to de-select the “Services” category.
We’ll add our final tax rate the same way, but this time, the only categories we’ll select are those that will contain Medication.
With our tax rates established, we’ve addressed the first major items for getting our system configured.
Override Tax Profile (Patient Tax Profile)
When a patient qualifies for a set of taxes other than a location's set Profile or the Default, another Profile can be set within the patient record. To do so, simply navigate to the patient record in question and select Edit. Beneath the field for Tax Exemption in the patient record, a new checkbox will appear labeled Override Tax Profile. When checked, a user may select a specific Profile to use instead of the location's current Profile.
Note: - None - will default the patient to the location's Profile. Also, this setting is subject to the Restrict Changing of Tax Exempt Status to Managers and Admins setting found under Admin, Settings, General Settings.
With Tax Rates setup in the system, your pricing structure can still reflect ‘tax=included’ pricing. For more information, search our KnowledgeBase for ‘Tax Included Pricing.’
TAX TIPS - Tax Included Calculator
If you advertise your product pricing as being "tax-included", you'll need to set up your product pricing in MJ Freeway to be at the pre-tax price. MJ Freeway will then add the proper amount of tax on at the end of the sale. You can figure out the pre-tax price as follows:
A = tax-included amount
B = tax percentage, i.e. .08 = 8%
pre-tax price = A/(1+B)
What you DON'T want to do is just create the product as having the tax-included price and turn off the sales tax calculation in MJ Freeway. There are a number of reasons for this, including:
- your Quickbooks export will be wrong
- your sales tax report will be wrong
- receipts will show that the patient paid 0 sales tax, which is incorrect, the tax was just bundled in the price
- most states require that sales tax be explicitly stated on the receipt
**Note: When taxes are changed in the system and when if you use the tax included pricing, you will have to update every pricing group and patient pricing group and product.