To setup the luxury tax on apparel sold for more than $1,000 (per item, not entire sale):

1. Select Administrative > Sales Tax > Tax Definitions. 
2. Select Add. The New Sales Tax Definition window will appear.
3. Enter an ID and description for this tax definition (e.g., CTLux2 and Apparel Luxury Tax).
4. Enter 1.4 into the Rate % field.
5. Enter 0.005 into the Rounding field.
6. Change Qualifying Sales to Items Costing and enter $1,000 into the of at least field.
7. Set Qualifying Customers to Shipping to (or walk-in to store located in) and choose CT in the State drop-down list.
8. Set the tax starting date to 7/1/2011. Set the ending date to anytime in the distant future (i.e., 1/1/2099).
9. Select the Categories tab and check only categories that contain:
      •  Watches
      •  Handbags
      •  Articles of clothing, wallets, other worn apparel.
    
10. Select the Stores tab and check each store in Connecticut.
11. Select the Misc tab and check those miscellaneous items this tax may apply to (e.g., Misc Non-Inventory Apparel Item).
12. Select OK/Save and Close.

It will be necessary to create a second miscellaneous non-inventory item if you use Misc Charge at POS to sell both jewelry and apparel items that might retail for more than $1,000. See the section on Misc. Charge for information on this.

If you use the Custom Job function to create watches or other wearable apparel that retails for more than $1,000, please contact Technical Support for assistance in getting properly setup to ensure the correct tax amounts are collected.