Point-of-sale tax collection system and method of using same

• US 5,644,724 A
• Filed: 09/28/1994
• Issued: 07/01/1997
• Est. Priority Date: 09/28/1994
• Status: Expired due to Term

• Current Assignee: Fairshare LLC
• Original Assignee: Donald J. Cretzler
• Inventors: Cretzler, Donald J.
• Primary Examiner(s): Weinhardt, Robert A.
• Assistant Examiner(s): Thomas, Joseph
• Application Number:
  US08/314,249
• Time in Patent Office: 1,007 Days
• Field of Search: 364/401 R, 364/408, 364/409, 364/405, 235/379, 235/380, 395/219, 395/231, 395/242, 902/22, 902/24
• US Class Current: 705/19
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A new and improved tax collection system and method collects and remits taxes in real time at point-of-sale locations. The system includes a group of point-of-sale terminals at merchant point-of-sale facilities that receive and store tax collection information under merchant control. A bank computer at a merchant bank accesses the stored tax collection information and wire transfers the collected sums periodically to at least one computer at a tax authority bank. For credit or debit transactions, a service computer receives the tax collection information daily from certain ones of the point-of-sale terminals, and wire transfers the credited or debited taxes to the tax authority bank computer.

Claims

1. A method of facilitating the collection of sales or use taxes by a bank computer means, comprises:

using a plurality of merchant point-of-sale terminal means by a group of different merchants at different point-of-sale locations, each terminal means including cash and credit/debit card payment means for facilitating the receipt of payment of merchandise;

collecting cash and credit/debit card payments from the sale of merchandise transactions with the merchant terminal means by the group of merchants;

determining sales or use tax information for each individual payment collected by said terminal means at the time of the collection thereof;

accumulating the total of all sales or use tax information for each terminal means during a given short periodic time interval substantially less than quarterly;

storing the accumulated totals of tax information for each terminal means;

sending to merchant computer means from each one of said terminal means a message including the accumulated totals of tax information for a given terminal means, the identification of the merchant terminal means sending the message, and an authorization code to instruct the merchant bank to pay the taxes based on the collected payments from the bank account of the merchant;

receiving the messages and storing them in said merchant computer means from said terminal means for each merchant;

accumulating the stored merchant tax information for the group of merchants; and

sending a single tax payment corresponding to the accumulated tax information for the group of merchants to a taxing authority bank and sending a report message including the identification of the merchants making the tax payments corresponding to the single tax payment.

2. A method according to claim 1, further including accessing current accumulated totals of sales taxes from a group of different merchants.

3. A method according to claim 2, further including storing the accumulated merchant tax information indicative of the group accumulated totals.

4. A system for facilitating the collection of sales or use taxes by a bank computer means, comprises:

a plurality of merchant point-of-sale terminal means for a group of different merchants at different point-of-sale locations, each terminal means including cash and credit/debit card payment means for facilitating the receipt of payment of merchandise;

means for collecting cash and credit/debit card payments from the sale of merchandise transactions with the merchant terminal means by the group of merchants;

means for determining sales or use tax information for each individual payment collected by said terminal means at the time of the collection thereof;

means for accumulating the total of all sales or use tax information for each terminal means during a given short periodic time interval substantially less than quarterly;

means for storing the accumulated totals of tax information for each terminal means;

merchant bank computer means;

means for sending to the merchant computer means from each one of said terminal means a message including the accumulated totals of tax information for a given terminal means the identification of the merchant terminal means sending the message, the identity of each one of the applicable taxing authorities, the allocation of the total sum of collected taxes to the individual taxing authorities, and authorization codes to instruct the merchant bank to pay the taxes based on the collected payments from the bank account of the merchant;

means for receiving the messages and storing them in said merchant computer means from said terminal means for each merchant;

means for accumulating the stored merchant tax information for the group of merchants for each applicable taxing authority; and

means for sending single tax payments corresponding to the accumulated tax information for the group of merchants to the applicable taxing authority banks and report messages including the identification of the merchants making the tax payments corresponding to the single tax payments for each applicable taxing authority.

5. A system according to claim 4, further includes:

taxing authority computer means for receiving the gathered tax information and collected taxes;

said merchant bank computer means being coupled to selected ones of said plurality of terminal means for supplying said taxing authority computer means with the gathered tax information and collected taxes; and

service bank computer means coupled to selected ones of said plurality of terminal means for supplying said taxing authority computer means with taxpayer information and taxes from certain individual members of the general public authorizing the payment of taxes for goods or services supplied by individual ones of said merchants.

6. A system according to claim 5, wherein said terminal means includes:

modem means for communicating gathered tax information to selected ones of said merchant bank computer means;

microcomputer means responsive to input signals for computing required taxes associated with individual sales to members of the general public by at least one of said individual merchants; and

input means for generating the input signals, said input signals being indicative of transaction information.

7. A system according to claim 6, wherein said input means includes display means for providing a user with a visual indication of the computer taxes for individual sales.

8. A system according to claim 6, wherein said input means includes keypad means for gathering transaction and tax information.

9. A system according to claim 8, wherein said keypad means includes a group of control keypads for entering control information to help facilitate cash and credit type transactions.

10. System according to claim 4, further including means for gathering cash transaction information.

11. A system according to claim 10, further including means for calculating sales or use tax based on the stored transaction information.

12. A system according to claim 4, further including means for gathering credit/debit card payment information.

13. A system according to claim 12, further including service bank computer means for receiving messages from each one of said terminal means, said messages including accumulated totals of tax information for a given terminal means, the identification of the merchant terminal means sending the message, the identity of each one of the applicable taxing authorities, the allocation of the total sum of collected taxes to the individual taxing authorities;

and

authorization codes to instruct the merchant bank to pay the taxes based on the collected payments according to the credit/debit accounts of the customers of the merchant.