To setup the luxury tax on jewelry sold for more than $5,000 (per item, not entire sale):

1. Select Administrative > Sales Tax > Tax Definitions. 
2. Select Add. The New Sales Tax Definition window will open.
3. Enter an ID and description for this tax definition (e.g., CTLux1 and Jewelry 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 $5,000 into the of at least field.
7. Set Qualifying Customers to Shipping to (or walk-in to store located in) and choose CT from the State drop-down menu.
8. Set the tax starting date to 7/1/2011. Set the ending date to anytime in the distant future (e.g., 1/1/2099).
9. Select the Categories tab and check all categories except categories setup for:
      •  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 Jewelry Item).
12. Select the Other tab and check Repair Parts, Custom Parts, Custom Labor, Custom Other.
13. Select OK/Save and Close.

This luxury tax applies to custom jobs based on the final selling price of the custom piece.  There is a special procedure to tax these jobs correctly. See the section about Custom Jobs for more information on processing these sales appropriately.