That's odd because it's the opposite for us. We need shopify to charge all the district taxes but they are not. We have economic nexus (no physical location in CA), but the only way to set that up in shopify right now is to add a random zip code, so it's only charging the correct tax rate for sales in that zip code. Either way, the CA tax setup in shopify needs work and quickly!
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So, we realize this functionality is most likely on Shopify's radar, but I just need to stress the importance of tax setups for the non-Plus users and new upcoming economic nexus/wayfair case tax laws. As it stands right now, the shopify economic nexus tax feature is just a hack/workaround of the physical nexus feature, where you just add any old zip code and shopify will calculate taxes. The problem is, this does NOT work in a state like CA since local/district taxes need to be charged everywhere based on economic nexus, not just inside the district of the physical nexus *which doesnt exist* with an economic nexus! CA law doesn't go into effect until April 1 but ourselves as well as many other businesses have already received letters from the state asking us to collect and remit immediately. And of course this feature needs to be ready prior to 4/1 and not a day after. Chat support offered a workaround of adding every zip code to shopify as a physical nexus (lol) which in theory is not the worst idea but there's no way.... can an override maybe be created to charge these all local taxes? Is there something I'm missing here? I'm sure tons of sellers are running into this same issue.
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