Set Item As Taxable (Mark to Be Charged Sales Tax)
Items can be set as taxable (United States Vendors) by setting the sales tax percentage for your state in the sales tax configuration screen and then marking items which should be taxed in the Products Manager.
The ‘Set Item As Taxable’ feature is located in the “General Info’ tab on the item’s Product Manager. (This feature is also shown on the ‘Add Item’ form when adding a new item to the store.)
Sales tax will only be calculated on an order if there are item(s) in the shopping cart that are marked as taxable and the customer’s shipping state or alternate shipping address state matches the state selected in the sales tax configuration manager
Below is a screen shot of the sales tax (taxable item) selector on the ‘General Info’ page of the product manager.