Why is a tax exempt customer still being charged tax on their end?

We recently opened a new location at a YMCA. We now have a lot of transactions that are tax exempt on otherwise taxable things. The staff is fully trained on turning the tax- exempt status on when asked by these customers but has recently come to all of our attention, tax is being charged *somewhere* along the way according to the customers credit card statements.

Ill show you an example, based on a credit card. Which are NOT taxed either way. Customers Printed ReceiptCustomers Printed ReceiptCustomers Credit Card statmentCustomers Credit Card statmentFrom Square Transaction DashboardFrom Square Transaction Dashboard

 

As you can see tax is being applied anyway, according to the cc company. But cannot be seen as being charged on any square receipts. You can also see another transaction from us at the bottom of the credit card statement, in which tax was turned off for all items during checkout but customer is still being charged on the back end???

 

Does anyone know why this is happening??

Thanks

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looking at the information presented, you are correct you are not charging tax on your transaction.  What it looks like to me is the credit card statement is automatically breaking down the tax at 8% of the total sale as that is what those two sales are.  But as you can see you did not collect sales tax.  I'd be interested to see the other totals and if it is just an automatic calculation of 8% on all of them.  Why it is doing that I do not know as I have never seen one do it that way.

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