Tax Areas

A Tax Area is a specific tax locale where a tax rate is applied. Each Tax Area has one or more Tax Rules (one rule for each Tax Code) that specify the tax rate to be applied to items assigned the Tax Code for that Tax Rule. For example, a Tax Area named FOLSOM has a Tax Rule for the TAXABLE Tax Code that specifies items with that Tax Code get 8.75% tax.
Tax areas are defined at the Subsidiary level. 
To add a new tax area, in Admin Console - Node Preferences - Taxes, drill down to the desired Subsidiary. Then in the Tax Area section, click the Add button.
Enter the Tax Area Name you want to define. Save the changes.
Sample list of tax areas:

About the Taxable Ceiling
The Taxable Ceiling setting is designed to handle a special tax situation that exists in Florida (and possibly other locales). Florida law mandates a minimum sales tax rate collected by the state government. However, the law also allows each county to set its own local tax, up to the defined ceiling, that is collected on top of the general state rate. The tax applies only to the portion of the item price below the ceiling. 
To configure taxable ceiling:
Select "Sales Tax - Multi" as the tax method.
Define a tax area for the mandated state tax and additional tax areas for counties.
When defining the country tax areas, enter the current taxable ceiling.Assign tax areas to stores. 
When creating transactions at stores, the correct state and county tax is automatically applied.  The county tax is applied to the portion of the item price below the Taxable Ceiling. The county tax is not applied to any portion of the price above the Taxable Ceiling
Example
A customer purchases an item in Dade County with a price of: $7,000. The total tax rate in Dade County is 7% — the 6% state tax plus an additional 1% county tax.
The State tax (6%) is applied to the entire $7,000. (7,000 *.06 = $420). The County tax (1%) is only applied to $5,000 of the price. (5,000 * .01 = $50).
Total tax charged = $470.