A seller has the option of calculating the tax due using either the tax bracket (See ST-75, Sales Tax Collection Schedule) or by multiplying the taxable receipts by the applicable tax rate and calculating the tax to the third decimal point. One-half cent ($0.005) or higher must be rounded up to the next cent; less than $0.005 must be dropped in order to round the result down.
Example: Customer purchases flowers for $20.00 from seller. Seller must calculate the tax to the third decimal place as follows:
$20.00 (flowers) x 0.06875 (sales tax rate) = $1.375
The tax must be rounded to $1.38
$20.00 (flowers) + $1.38 (sales tax) = $21.38
Seller must collect $21.38 from customer.