The DynamicZip™ Tax by Item Category feature (TBIC) allows you to define an Item Category's Tax Option by state. This feature is controlled using the DZ Tax by Item Category Setup window.

Note: Prior to Build 72 this feature was called Tax by Item Class. The functionality used to be based on Item Classes but has been changed to DynamicZip's own Item Categories to surpass any conflicts that may occur with using item classes for sales tax functionality. Please see Copy Item Classes To Categories FAQ.

TBIC can be used to handle item specific tax exemption laws by allowing the user to specify in which states an item category should not be taxed. TBIC can also be used to handle when states require that certain items be taxed at unique tax rates. For more information on assigning a unique tax rate with TBIC please see the Use ATC with TBIC option in the DynamicZip Setup window .

• See also Tax by Item Category Examples.
• Using TBIC with Advanced Tax Calculation
• Tax by Item Category is enabled in the Sales Order Processing Sales Transaction Entry window and the DZ Tax Lookup window.
• For help managing the taxability of freight and miscellaneous charges, please see Tax by Item Category FAQ .