View source for Freeside:2.1:Documentation:Administration:Texas Tax

Texas has a $25 per-month (per-customer) tax exemption for internet access.  Annual/quarterly/etc. packages are exempt for up to the $25/month over the applicable time period.

* Turn on the <B>enable_taxclasses</B> and <B>require_taxclasses</B> configuration values (Configuration | Settings | Edit Configuration | Billing)

* Go to Configuraton | Billing | View/Edit Locales and tax rates, scroll down to US - TX and click on "expand taxclasses"

* Enter "Access" and "Other" tax classes (or whatever labels you want)

* From the tax rate listing click on "Edit tax rates".  Scroll down to US - TX again and enter the state sales tax rate (8.25%?  varies by county?) for both tax classes.  For the "Access" tax class, enter a $25 monthly exemption.

* If you already have package definitions in your system, edit them and assign them to the correct tax class.