# How should I handle taxes in myallocator?

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## Background

Taxes can be confusing sometimes because certain channels treat them differently.

Most channels expect the rates to have taxes included, so we recommend that properties enter the rates to include the tax.

## Example

Let's say you had a room that costs \$100, and you have a 12.5% tax.

We recommend the rate you would enter into myallocator would be \$112.50 as shown below: ## Channels that don't expect taxes included

For the few channels that expect rates without taxes (such as Orbitz), you can set a "channel-specific rate difference" so that the rates have the tax percentage taken out.

In the example above, since there is a 12.5% tax included in the rate, you would need to remove that percentage from the rate for those channels that don't expect the tax to be included.

To determine the percentage discount, you would take the following forumla to obtain the discounted percentage:

1 Divided by (1 Plus TAX Rate)  = Rate Difference

Then, you need to determine the percentage to discount:

1 Minus the Rate Differerence Times 100 = % Discount

Let's take the example from above for the Tax percentage of 12.5%:

• 1 / 1.125 = .88889

Then, you need to determine the percentage to discount:

• (1 - .88889) * 100 = 11.111 % Discount

Once you have determined the % Discount to apply to the channel, you would follow the steps below to apply that % Discount to the channel: ## Send a Full Refresh

Once you update the Channel-Specific Rate Difference to take out the tax percentage, you need to send a Full Refresh to all channels.