I have a product for $59.95 (includes 10% sales tax). I want that price showing up in the catalogue when a user browses to it, whether they are logged in or not.
To keep things simple, I entered 59.95 into the price field for the product (via admin console). I left tax code field blank.
On a separate PC, browsed to the web site, drilled down in the catalogue, and the product shows a price of $67.29. Where on earth is AC7 getting that from?
Base currency is AUD. I happened to notice that the 67.29 is 12.25% increase over 59.95, which is the same as California sales tax (I think at least - I live in Australia).
So I tried a test. I changed the product price to 54.50 and set the tax code to 10%. Now the product (for a non-logged in user) is showing $61.18 - which is this mysterious 12.25%.
So it seems to me that regardless of whether a tax code is set or not for a product, AC7 ignores it and adds 12.25% to the price of the product.