Exempt States limits an Exempt customer to specific States. For example, a Wholesale customer would be marked Exempt and list their Exempt States, where they have a resale certificate or license. If you leave Exempt States blank the customer will be Exempt for all states, which might be the case for a Government customer.
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This feature works with TaxJar Connect to not apply sales tax on Quotes, Orders, and Invoices when the Shipping State is in this list.
To set Exempt States on a Customer card:
1. Click the Exempt checkbox
2. Enter State abbreviations in Exempt States
3. Click OK to save changes to the Customer card