CCH Tax Introduction
Learn about CCH Tax implementation on invoices generated in CIS.
Using CCH, CIS is able to implement the latest tax changes with monthly updates from the internet. CCH is a rate look up system for all utility taxes that also reviews the latest tax changes.
CCH Incorporated is a third party company that offers a suite of sales tax options with the latest sales and uses tax rates and forms for United States and Canada.
Benefits of Using CCH
- Reduces the number errors
- Ensures that you are in compliance with the state laws
- Saves your company time and money
- CCH uses the precise tax calculation. The Common Tax System provided by the state has a tendency to round the tax calculation.
Difference between CCH and Common Tax System
The Common Tax system does not collect Miscellaneous Gross Receipt Tax (GRT) and Public Utility Commission Tax (PUC). Currently we are including the GRT and PUC taxes by creating rates codes manually.
Using CCH, Viterra is able to gather the GRT and PUC tax information automatically using the Geocode and Location Code. This ensures the current tax information without having to create rate codes.
CCH also uses the Geocode when looking up tax information for a Location Code. The Common Tax system only uses the ZIP. The ZIP+4 identifies a geographical segment within the geographical delivery area.
Definition of terms
- Geocode - A code based on the coordinates of a location given by an address.
- Location Code - A Location Code is a code based on the City, County, State, and local grouping.
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Miscellaneous Gross Receipts Tax - This is a tax imposed on each utility company located in an incorporated city or town having a population greater than 1,000, according to the federal census. The amount of this tax adjustment is determined by the formula:
FTA = TAB x GRTR - FTA - Gross Receipts Tax Adjustment
- TAB - Total amount billed for electric service (excluding sales tax and any other amounts deductible under provisions of the cooperative’s franchise with the municipality)
- GRTR - Gross Receipts Tax Rate levied by the municipality
- Public Utility Commission Tax (PUC) - This regulates the Utilities and resolves consumer issues. The PUC Tax is a fee imposed on each public utility within the jurisdiction of the Public Utility Commission. State regulatory agencies impose the PUC tax charge to fund their operations.
GRT and PUC updates or changes
All changes can be made in the Premise control on the Customer Summary page. In the future, Viterra will also allow GRT and PUC tax changes to be made during enrollment.
Below image is a Premise Detail Interface.
