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Disabling tax on shipping (products only)

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9 Aug 2009, 6:25 PM
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thotful1

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Disabling tax on shipping (products only)

Our site is using a shipping rate table. The shipping rate calculates correctly. Tax is only being applied to orders within the state we ship from - which is also correct.
However, it appears that shipping charges are being added to the sub-total before taxes are calculated. (ie tax is applied to both) In this scenario, what is the correct way to prevent taxes being applied to shipping charges as well as products?