[Tax Code Item Label (2)]

Enter the tax code that identifies the tax rate that applies to this item in an item-based tax system or the exemption code for this item in an area-based tax system.

In an area-based tax system, a blank tax code signifies the item is taxable at the rate of the CO header tax code. A non-blank code identifies this item as being exempt.

In an item-based tax system, the tax code entered must be a rate-type code. The rate of the tax code is used when calculating taxes for this item. The code entered is validated against the tax code file.

This field is only prompted for when a second tax system is defined, the Prompt for [Tax System (2)] check box is selected on the Tax Parameters form, and the Prompt on Line Item check box is selected on the Tax Systems form.

This field defaults from the Items form. In an item-based tax system, the tax jurisdiction will precede the Items form defaults.