Setup the tax structure at the Home Office

At the Home Office do the following:

Select System > Support Files > Tax Tax Menu
Choose Taxable Item Type
Select New
Within the Taxable Item Type screen enter the ID and the Description applicable to the taxation.
Select OK to return to the prior menu.
 
Return to the Tax Table Setup screen and select Tax Tables
Select New to create a new tax table that will support the new taxable item
 
Enter the Description, Location and the Item type that was created in the prior step.
 
The rate seen in the above screen was created by selecting Add and then selecting the Type of Tax State (typically), the Minimum Dollar amount and the Maximum Dollar Amount and the Tax Rate %.
 
Select OK, OK and then Close to back out of the menu system and save the record.
Setup the tax structure at the Home Office