Step 5. Apply Tax Jurisdictions. Select whether or not to enforce Jurisdictions for Collecting Tax under this tax rule.
Click on the "Yes, collect taxes based on the customer's jurisdiction" to specify the geographic locations in which to collect taxes. This will take you to Step 5a. to define the jurisdictions.
Click on "No, collect this tax regardless of jurisdiction" to collect this tax on all sales of these items regardless of geographic location. This will take you to Step 6. Rounding Method.
Step 5a. Select Jurisdiction Criteria. Select the type(s) of jurisdictions that will be compared with the customer's information in order to determine applicability of taxes from the jurisdictions listed.
To select a jurisdiction, click on the check box next to the jurisdiction type.
NOTE: You may only select one jurisdiction for each type of tax.
Example:
As a general rule-of-thumb, state sales tax usually applies only when the Customer lives in the same state in which the store is located.
Step 5b, Identity the values Being Taxed. Depending upon the field you selected in Step 5a, this step enables you to identify all applicable selection criteria.
To add a new jurisdiction, click in the text field, enter the jurisdiction value, and click on the "Add" button.
To delete a jurisdiction from the listing, select the jurisdiction value from the list box, and click the "Delete Selected" button.
Examples:
If you had selected "State" in 5a, in this step you would enter a list of all states that the jurisdiction applies to, using common two (2) letter abbreviations.
If you had entered "Zipcode" in Step 5a, you would enter a listing of Zipcodes that the tax jurisdiction applies to.