Taxes and Zones - really confusing me!

I am setting up a Zen Cart shop for a wine shop, and am just confounded by setting up the zones and tax rates. If anyone can help or point me to a previously started thread that might help I'd really appreciate it. Here's the scenario:

The shop, which is in Denver, sells wine and non-wine items e.g. wine bottle openers.
If the buyer/deliver-to address is within Denver, the tax is
wine: 8.1%
non-wine: 7.772%

If the buyer/delivery is in Colorodo, but not in Denver, the tax is:
wine and non-wine: 4.1%

And of course no tax for out-of-state orders (not all states can be shipped alcoholic items).

I've read a thread about setting up a zone for the city and one for the rest of the state, but I'm not clear about that process. And how do I deal with the different tax rate for wine and non-wine items?

I'm confused about setting a tax class for the item when it really depends on the destination and type of order.

Basically set up Colorado as a zone and to this add 3 tax classes with the same priority so that they are additive

Colorado - 4.1%
Local - 3.672%
Alcohol - 0.328%

Thank you! Boy was I over-complicating it. I've got that set up now and will give it a try. :smile:

kobra:

Basically set up Colorado as a zone and to this add 3 tax classes with the same priority so that they are additive

Colorado - 4.1%
Local - 3.672%
Alcohol - 0.328%

Do I need to make a separate zone for the Local (Denver) part - so Colorado would have 2 zones, one within Denver and one exluding Denver?

Colorado will have 3 tax zones:

1: Colorado - 4.1%
2: Local - 3.672%
3: Alcohol - 0.328%