You have a partially exempt customer in Louisiana who needs to pay a 1% state tax rate.
- Create two tax rules using a tax rule import:
- An exempt entity rule for LA with their exemption reason, making it taxable.
- A rate override rule making the state rate for the special LA state rate, applying only to that jurisdiction.
- Make an exemption record for the customer, or use the entity use code on the rules in their transactions.
Note: We recommend using a custom entity use code or one that would be seldom used for this purpose, as the rules will apply to all sales in LA for any customer with the type of exemption set in the rule.