# Multi jurisdiction and sourcing

Source: https://developer.avalara.com/tax-transparency/cbo4772830155401/

# Multi jurisdiction and sourcing

The AI agent explains how multiple jurisdictions and sourcing rules affect tax calculations. When a transaction involves more than 1 tax authority or different sourcing methodologies, the AI agent clarifies how each jurisdiction contributed to the total tax amount.

**Jurisdiction breakdown**

When tax is calculated across multiple jurisdictions, the AI agent identifies each jurisdiction and shows how its rate contributed to the total tax.

For example, the AI agent explains:

Your total tax of $87.50 comes from three jurisdictions:

-   California State: 6.00% = $60.00
-   Los Angeles County: 2.25% = $22.50
-   City of Los Angeles: 0.50% = $5.00

All rates are based on the ship-to address.

The AI agent presents jurisdiction-level details to clarify how state, county, city, and special district rates combine to produce the final tax amount.

**Sourcing types explained**

When sourcing rules affect tax calculation, the AI agent explains whether the tax is determined based on destination, origin, or mixed sourcing.

Sourcing type

When it applies

Example states

**Destination**

Tax is based on where goods are delivered.

California, New York, Florida

**Origin**

Tax is based on the seller's location.

Texas (for most sales), Ohio, Pennsylvania

**Mixed**

Different sourcing rules apply to products and services within the same transaction.

Varies by transaction type

The AI agent clarifies which sourcing rule applied and how it influenced the calculated tax.