My state (NC) has gone to 'destination' sales tax calculation, so I set up the sales tax calculations in my selling profile as follows. The default rate in NC is 6.75%, so I set the "North Carolina" state rate to 6.75%. For the counties that charge other than 6.75%, I then added entries for each Zip Code in that county at the appropriate rates (some 7%, some 7.25%). As I understand it, on any purchase, PayPal should look in this table, and if the Zip Code is present, then apply the specified rate. Otherwise it should check to see if the state is NC, and if so, apply the NC state rate. I just had a sale for a NC county with a 7% sales tax rate. PayPal calculated the sales tax at a 12.125% rate.I double checked and I have the correct Zip Code entry in the table, set to 7%. I had to refund the difference to the customer, which of course makes them wonder what I'm up to (I explained PayPal is calculating it incorrectly). Verifying every in-state sale's sales tax calculation and refunding if necessary will be a real pain in the neck. I've notified PayPal of the problem by email and haven't heard back yet. Anybody else experiencing this problem?
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