WET (Water Service Excise Tax) • As of all 7/1/18, the Water Service Excise Tax replaces Sales Tax (both State Sales Tax and Local Option Sales Tax)

on all sales of water service (both our Water Service item and our Water Usage item).

• The WET rate is 6% to match the previously charged State Sales Tax rate. Cities will not receive the 1% they previously received from the Local Option Sales Tax.

• Cities must apply for a new WET permit. You can apply for the permit by downloading and mailing or faxing the permit registration form from: https://tax.iowa.gov/sites/files/idr/forms1/Water%20Service%20Excise%20tax%20permit%20application%20(78010).pdf

• You may review the complete information by visiting: https://tax.iowa.gov/WET

• The following instructions will help you setup ClerkBooks for the new Excise Tax.

• You will need version 4.14.1801.1923 of the Utility Billing Module, as shown in the images below. Go to the Help menu and click About. Look for the version number.

Open QuickBooks Open the Item List

1. Navigate to the Sales Tax Items 2. Right-Click anywhere in Item List 3. Click “New”

1. Select “Sales Tax Item” 2. Enter “QB Sales Tax” 3. Enter “Sales Tax” 4. Enter 0.0% 5. Select “Iowa Department of Revenue & Finance” 6. Click “OK”

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1. Select “Edit” menu 2. Click “Preferences”

1. Select “Sales Tax” 2. Select “Company Preferences” 3. Select “QB Sales Tax” 4. Click “OK”

1. Right-Click “LOST” 2. Click “Make Item Inactive”

Click “Yes”

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1. Right-Click “State Sales Tax” 2. Click “Make Item Inactive”

Click “Yes”

1. Right-Click “Sales Tax” 2. Click “Make Inactive”

1. Right -Click anywhere in Item List 2. Click “New”

1. Select “Sales Tax Item” 2. Enter “WET” 3. Enter “Water Service Excise Tax” 4. Enter 6.0% 5. Select “Iowa Department of Revenue & Finance” 6. Click “OK”

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1. Right-Click anywhere in Item List 2. Click “New”

1. Select “Sales Tax Item” 2. Enter “Full Sales Tax” 3. Enter “Sales Tax” 4. Enter 7.0% (your rate, including LOST) 5. Select “Iowa Department of Revenue & Finance” 6. Click “OK”

Open Customer Center

1. Select “New Customer & Job” 2. Click “Add Multiple Customer:Jobs”

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1. Find “Tax Item” column (if not there,

click Customize Columns and add Tax Item to the Chosen Columns box) 2. Change top item to “QB Sales Tax” 3. Right-Click “QB Sales Tax” and Click “Copy Down”

1. Verify that all Tax Items have been changed to “QB Sales Tax” 2. Note: Sub-customers or “Jobs” will

need to be removed from their parent customer, changed manually, then moved back under their parent

3. Click “Save Changes” 4. Click “Close”

Open Utility Billing Module Edit Configuration / Open Settings

1. Select “Charges” tab 2. Verify there are Water Service and Water Usage charges setup for every Customer Type and Sub-Customer Type (even if they are the same rates)

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1. Add tax lines for each Customer Type and Sub-Customer Type as shown 2. Use 0% as the Rate for all tax lines (QuickBooks will add the correct amount as the invoices are created)

Note: Do not put any rates in the Water

Usage Rates button for the sales tax lines

Note: I double checked with the State and

both Water Service and Water Usage are subject to WET Note: I double checked with the State and

since Water Service and Water Usage are no longer subject to Sales Tax, they are no longer subject to LOST

Repeat the process for Sewer Service and Sewer Usage 1. Verify rates for each Customer Type and Sub-Customer Type (this time

Commercial only as there is no tax for Residential)

2. Add Sales Tax lines for each Commercial Customer Type and Sub-Customer Type with a 0% Rate

Repeat the process for Garbage and Recycling Items 1. Verify rates for each Customer Type and Sub-Customer Type (this time

Commercial only as there is no tax for Residential)

2. Add Sales Tax lines for each Commercial Customer Type and Sub-Customer Type with a 0% Rate

Once you are done with all services 1. Click Save 2. Do a test run of a few invoices

Your Invoices should look like something this: (you may need to adjust your template to fit everything in – there is a Cheat Sheet for creating custom invoice templates in the User Support Knowledge Base at: http://wp.clerkbooks.com/user-support/knowledge-base/tools-tricks/custom-invoices/)

Residential:

Commercial:

Your Sales Tax Report will look something like this: 1. $578.87 Total Sales 2. $291.37 Sales Tax Sales 3. $100.00 WET Sales 4. $187.50 Non-Taxable Sales 291.37+100.00+187.50 = 578.87

Call Eddie at 855-525-3757 or 641-425-9878 If: 1. You have Electric Services 2. You have more than 1 type of charge in any section 4. Anything doesn’t work right 3. You have any questions or concerns

I AM HERE TO HELP 😊

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