Create Taxcode records for all tax districts in which you are required to collect sales tax. 

Sales tax rates in the United States are generally determined by geographic boundaries such as state, county, city, or tax district.  Each county, city or tax district can impose a different rate for sales made within that district.  The Tax Rate Determination system allows you to create a record in the Taxcode file for each region (state, city, county, tax district) in which you are required to collect tax.  Each of these Taxcode records should be assigned the total sales tax rate that applies within the district.  Each Taxcode record also contains a “Tax Shipping” flag that indicates whether or not shipping charges are subject to tax in the district.  Once Taxcode records have been created for all of the districts in which you are required to collect tax, these Taxcodes can be assigned to the single zip code or range of zip codes located within the district.  The system can then find the appropriate rate to apply to each sale using the zip code to which the merchandise is being shipped.  Note: In general, your requirement to collect sales tax in each geographic region or tax district is determined by the regulations which apply to the district and by whether or not your company is deemed to have a business presence in the district.  Since your requirement to collect sales taxes is based on the location(s) in which your company does business and on legal interpretations, Cove does not give advice as to where your company is required to collect taxes.  You should consult with your CPA or a qualified attorney if you are unsure of where you should be collecting taxes.


Create a Taxcode Record to be used for all geographic areas in which you will not be required to collect sales tax.