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How do I make California taxed at a different rate only for some customers?


You have a partially exempt customer in California and need to make them charged tax at the special rate.


Avalara Avatax


  • Create two tax rules using a tax rule import:
    • An exempt entity rule for CA with their exemption reason, making it taxable.
    • A rate override rule making the state rate for CA the special 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 CA for any customer with the type of exemption sset in the rule.


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