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Why is tax not being added to a local jurisdiction even though Nexus has been enabled for a zip code?

Overview

I added a local jurisdiction for AZ (Tucson) to my Nexus jurisdiction.  However,  no City tax is being added when I recalculate the invoice. 

Environment

Avalara AvaTax

Resolution

  • Depending on the address it may lie outside of the city limits. Therefore, city tax is not being applied. Using the address along with the zip code will give you a more precise tax rate. Using only the zip code may give you an incorrect tax rate. 

  • In states like Arizona and Colorado- you may need to select applicable cities if you have selected "Selective" in the nexus settings (under select jurisdictions).