You want to know how to make a customer partially exempt in AvaTax.
- Some states have partial exemptions for exemptions reasons. These are built in by default.
- For example, industrial is partially exempt in California and Alabama. See Exemption Reason Matrix for more information.
- If the desired rate doesn't exist in our system because it is a special rate you can create custom rules.
- Create an Exempt Entity tax rule for that particular exemption type to make it taxable in the desired state
- Create additional rules to make them taxed in a special way using a Base Override, Rate Override or Taxability rule (Organization > Tax Rules > New)
For more information, read exempt customers from sales tax.