You must set the appropriate tax parameters as they relate to different tax regions. Your business rules dictate, in part, which taxes the system applies to different jurisdictions, and how those taxes are applied.

You can attach taxes to a discount, link item table, nonmerchandise transaction, PLU file, or the department/class table. You can set them up as basic flat taxes or as step taxes, as required by both regional tax laws and your business rules. You can define up to 16 types of tax.

Use the Tax: General, Tax: Print Options, and Tax: Tax Steps objects to help you set up your regions and apply taxes to those regions.