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What could possibly cause Tax Code FR030000 to partially exempt a taxable transaction?

Overview

You see a tax code FR030000 in a transaction and that line item is partially exempt and you want to know why.
 
Environment
Avalara Avatax
 
Resolution
  • Some freight tax codes work on a "Tax Depends" logic where if part of the transaction is non-taxable then the same percentage of the freight line is non-taxable:

 

Note​: For example in a $10 sale with $5 taxable and $5 nontaxable, a $2 freight charge would have only $1 taxable, and $1 non-taxable. Half of the sale is non-taxable and the state requires tax on the freight charge only for the portion where the item being shipped was taxable, so half of the freight is taxable.