DynamicZip has a feature called Tax By Item Category which allows you to control the taxation of inventory items as well as freight and miscellaneous charges on a per state basis. The DZ Tax By Item Category Setup window allows you to choose a state, an Item Category and a Tax Option.
Create the item category FREIGHT using the DZ Item Category Maintenance window.
The CCH ZIPsales Database includes the Zipsales Database Rules file. The information contained in this file may help you determine in which states you are responsible for collecting tax on freight.
Create the item category MISC using the DZ Item Category Maintenance window.
Create an item category for each class of charges whose taxability varies from state to state. Examples could include categories like:
Follow the above steps to create, assign and manage whatever custom categories your business requires.
Item taxability for a substantial number of states can be found at Streamlined sales taxability matrix.
NOTE: Tax by Item Category was called Tax by Item Class in DynamicZip build 71 and earlier.
NOTE: If Assign Tax Schedule is disabled in the DynamicZip Setup window, TBIC will also be disabled.