Tax Districts
Charging the right sales tax for the right place — and what happens to the district when a contact moves accounts.
On this page
1Why tax districts exist
Sales tax depends on where the work happens, and a business that crosses a county or state line can’t use one rate. A tax district is a named set of tax rates that a proposal is quoted under, so the right tax is charged for the right place without anyone doing arithmetic.
2Material and labour are taxed separately
Settings → Proposal → Tax/Display carries separate Material Tax and Labor Tax settings. That’s why line items declare whether they’re material, labour, both or a note — the split drives the tax calculation as well as reporting. See Line Items & Item Categories.
3How a district gets assigned
A proposal’s tax district comes from the account the contact is currently in, and each account has a default tax district. If the contact moves to another account, ClientTether re-evaluates the district and reassigns it to the receiving account’s default. Two move processes trigger that re-evaluation:
- Appointment Assign To — an appointment assigned into another account.
- Manual Mass Move — contacts moved in bulk.
Moving a contact can change what they’re charged
Because the district follows the account, a contact moved between locations picks up the new location’s default district. On an open quote that changes the tax line. Check the total after any bulk move that involves quoted work.
4Troubleshooting
Tax is zero on a quote
No district is assigned, or the district has no rate for that material/labour split.
Two locations charge different tax for the same work
That’s the intended behaviour — each has its own default district.