Sometimes you will give out a partial refund. When GoDaddy Bookkeeping receives a refund from PayPal we don't actually touch the money. Whatever you process in PayPal will show up in GoDaddy Bookkeeping. We import the data from PayPal, so however the transaction is processed in PayPal, this is how it will show up in GoDaddy Bookkeeping.
You sell a $100 item for $106.50 with sales tax, and the customer requests a partial return; you refund $50 plus $3.25 in sales tax. Remember sales tax is not yours, you simply collect the sales tax, and then pass it on to the state. Likewise if you do a return with sales tax, you will want to return the portion you collected.