Regional Tax Automation: Apply Rules to Active States Only

The Use Regional Tax Automation Rules For Active States Only option is added under Select Type: Tax Automation under Tax Setting to allow Regional Tax Automation rules to run only for active states (and not in-active states), ensuring that inactive states are ignored during consolidation. This setting is intended if you want automation results to reflect only for the currently active states.

Note:

The setting is not enabled by default and is available only on the new Tax Settings screen.

When the setting remains disabled, Regional Tax Automation continues to apply rules to both active and inactive states, meaning automation outputs may still be populated for states marked inactive. When the setting is enabled, Regional Tax Automation restricts rule execution to active states only, and inactive states are excluded from automation during consolidation.