Items taxable in one location, but not another
We have two locations, meaning we collect sales tax for two states. The stores are in Massachusetts and Illinois.
When I make a sale in Massachusetts to a customer in Illinois, I know I can select Set Tax to change the tax rate to Illinois. The problem I'm having is that all items are taxable in Illinois, but many are not in Massachusetts. Here is the scenario:
Customer is in Illinois. I am selling to him in Massachusetts and will be shipping the product. He purchases an item that is not taxable in Massachusetts, but since he is in Illinois, the item IS taxable. I can change the tax rate, as I mentioned above, but the item is still non-taxable in Massachusetts, and any percentage times zero is nothin'.
Please tell me there is a solution that won't require me to change the tax status for each individual item. This should be automated somehow.