The sales tax program manages tax rates by assigning tax jurisdictions to the zip code areas where you do business. Tax jurisdictions can include tax rates from multiple entities such as state, county, and city. A customer's zip code determines their default tax rate.
Each tax authority to which you remit payments has a general ledger account set up.
Tax exception groups let you manage products and customers that are taxed outside the normal tax rates.
See Also:
Steps Required for Setting Up Sales Tax in Eclipse
How Eclipse Determines the Tax Jurisdiction for a Sales Order