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Use Tax areas to group all of the taxing authorities for a given area, enabling you to select a single tax area rather than multiple taxing authorities when applying taxes to your fees. Before you can establish tax areas, you must first set up applicable taxing authorities.
Typically you will set up a tax area using only one taxing authority, but you have the flexibility to set up a tax area that combines up to six individual taxing authorities, such as state sales and service taxes and/or county sales taxes.
To open the Tax Areas setup dialog, choose Setup > Taxes > Tax Areas.
In this dialog, you can give each tax area a unique description and choose multiple taxes to combine for the tax area.
See Setting up tax areas for more information on using this screen.