To handle nontaxable states, you can use Statewide Schedules This approach allows you to specify a single tax schedule ID to use for all taxable customers, and another, single tax schedule ID for all exempt customers (in the given state). By using zero rate tax schedules for both the taxable and exempt customers, you can ensure that no tax will be collected in that state.
DynamicZip can auto-generate the Statewide Schedules These tax schedules are designed to keep all of the customers within a state from being taxed without losing any of the reporting functionality.1) These statewide tax schedules can be created quickly and assigned to all states by using the DZ State Setup window.
NOTE: Prior to Build 72 any state that had a value in the Taxable ID field was excluded from the Rate & Boundary Import.
NOTE: If you'd like to remove the tax schedules for a state you can do so using the DZ Remove Tax Schedules window. If desired, the states tax details can also be removed using the DZ Remove Tax Details window.
Please refer to Statewide Exempt Schedules and Statewide Taxable Schedules for more information.