I need an exempt customer to only tax at the city level.
You will need to make an exempt entity rule in the admin console for the entity use code you'd like this to apply to.
Click the City Level
Choose your City you'd like this to apply to and Click next
Name your rule
Select rule type Exempt Entity
Choose whether it's sales or sales and seller's use
Select exempt No
Choose the entity use code (exemption reason) you wish this to apply to
Choose the tax code you'd like this to apply to (leave blank if you want all items to use this rule)
Choose a start and end date
Note you will need a support agent to flip the isallJuris switch off for this as that isn't currently a customer facing option.
Please call support at 877-780-4848 option 2 or email us asking us to flip that for the rule (state the exact name of your rule) that you need this done for.