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Why is this tax code ending in all zeros taxable?

Overview

You see tax applying on a sale with a tax code you think should be taxable.

Environment

Avalara AvaTax

Resolution

  • The more zeros in a tax code, the more generic it is, so it is more likely to be taxable
  • For the most precise tax, we recommend choosing a specific code which addresses your specific product, rather than a generic code. 
  • Examples:
    • "PH050000 Health Care Products" is for general Health Care Products and is taxable in several states
    • "PH050709 Over-the-Counter medicinal products - Pain relievers" is for a very specific product, and it is non-taxable in several states