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Add tax to sales order

One of our clients using LedgerSMB has customers both local and out of state.  

1. Basic: How do we configure LedgerSMB so that retail sales tax is added to a sales order (and a subsequent invoice)?

2. More advanced: How do we configure LedgerSMB so that retail sales tax is added when the customer is local, but don't add tax when out of state?

Thanks.
Brian

Brian Wolf
Phone: 410.367.2958
Email: ..hidden..
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