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<p>[QUOTE="Conder101, post: 26482669, member: 66"]No you would still price it at $2.99, then the taxes would be applied (here it is 7%) so it is now $0.21 for a total of $3.20 If it was 6% the total would be $3.17 which round DOWN to $3.15 If the rate was 8% the price would be $3.23 which would round UP to $3.25 The psychological $2.99 works just fine, no reason to drop back to $2.95. If rounding does have to occur (notice it didn't on the 7% rate) about half the time it will round up, and half the time it will round down and in the long run the up and the down will cancel out. There are only two ways you can set it so that it ALWAYS rounds up and that would be to set your prices and then never allow more than one item per transaction (because if you allow more than one item the final price will be back to a random amount that will sometimes round up and sometimes down) Or the taxes are included in the price on the shelf. If you do that then the tax paid rapidly adds up to MORE than you would have paid if you added up the prices and then applied the tax rate This is why, normally, including the tax in the price is not legal.</p><p><br /></p><p><br /></p><p>See my answer above. The tax in PA would still be 6%. Rounding is done to the price after the taxes are applied, rounding would NOT affect the tax RATE. And if they chose to change the tax rate there is no reason (other than outright greed) for them to change it from 6% to 10%, There is no reason they couldn't go from 6 to 7%.[/QUOTE]</p><p><br /></p>
[QUOTE="Conder101, post: 26482669, member: 66"]No you would still price it at $2.99, then the taxes would be applied (here it is 7%) so it is now $0.21 for a total of $3.20 If it was 6% the total would be $3.17 which round DOWN to $3.15 If the rate was 8% the price would be $3.23 which would round UP to $3.25 The psychological $2.99 works just fine, no reason to drop back to $2.95. If rounding does have to occur (notice it didn't on the 7% rate) about half the time it will round up, and half the time it will round down and in the long run the up and the down will cancel out. There are only two ways you can set it so that it ALWAYS rounds up and that would be to set your prices and then never allow more than one item per transaction (because if you allow more than one item the final price will be back to a random amount that will sometimes round up and sometimes down) Or the taxes are included in the price on the shelf. If you do that then the tax paid rapidly adds up to MORE than you would have paid if you added up the prices and then applied the tax rate This is why, normally, including the tax in the price is not legal. See my answer above. The tax in PA would still be 6%. Rounding is done to the price after the taxes are applied, rounding would NOT affect the tax RATE. And if they chose to change the tax rate there is no reason (other than outright greed) for them to change it from 6% to 10%, There is no reason they couldn't go from 6 to 7%.[/QUOTE]
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