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How do I make a tax code exempt at the state level but tax locals?

Overview

You want to know how to make a tax code exempt at the state level but tax locals.

Environment

AvaTax

Resolution

  • You would need to add a taxability rule to exempt the tax code. Make it taxable=No
  • Once you have saved the rule call in to support as there is a setting that only support has access to, to make the rule apply at the State level only.