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Why does Tax Depends Freight charge tax with Digital Goods?

Overview

A Digital goods tax code such as DC010500 is exempt in a state. Your tax code for Freight such as  FR030000 is Tax Depends on the same transaction, and is charging tax still. 

Environment

Avalara Avatax

Resolution

Tax Depends logic only works for physical items. As Digital Goods are non-physical, the Tax Depends logic is not used and just taxes the freight.