Abstract: A system for calculating and preparing state and local sales and use tax returns suitable for filing with state and local municipal taxing authorities is disclosed. The system in accordance with the present invention provides a total solution for sales and use taxes and is configured to not only determine and prepare state and use tax returns but also calculates and prepares returns of all local taxing authorities where the taxpayer conducts business. Thus, the system in accordance with the present invention is able to provide a total solution for determining and preparing state and local sales and use tax returns. The system is also able to easily and effortlessly prepare local municipal sales and use tax returns that are cumbersome.