Exempt category or individual products from tax

[Lance Monotone]

I need to be able to designate non-tangible products, such as events, as tax-free.

1. I’m using NJ state tax so only material products sold to NJ customers have tax applied.
2. We also use PS to sell admission to events conducted at our physical store in NJ.
3. Those events are purchased through PS and typically attended by NJ customers who are currently being charged tax as per PS’s state tax rules.
4. However, events should not have tax applied because they are not ‘products’.
5. When I attempt to set the tax on the product admin page to ‘No Tax’, the tax is still added in.
6. There seem to be a lot of variables when computing tax and they are spread out through the Product page, the Payment->Taxes page, the Shipping->States page.
7. I think I’m confused about the Shipping->States tax behavior, because it seems to me that choosing ‘Both Product and State Tax’ will apply the state tax, but would and should be overwritten by the individual product tax if that is set.

Can anyone set me on the right path?

Thank you very much for your responses!

[Burhan BVK]

There is an option to set the product as a virtual product. It might help you.

[Lance Monotone]

There is an option to set the product as a virtual product. It might help you.

Thanks...Is this the same as 'Downloadable Product'? If that's the case, then I have to provide a file which is not what I want to do. If not, where would I configure a virtual product?