Create a tax authority where the Tax Base is Standard Cost or Alternate Amount 1 then enter a cost of $10.00 for the item.  Set the tax percentage at 5% for 0.50.  Associate the tax with the item.

The original item (tire or battery) is also subject to sales tax and I would like to be able to associate a tax with the specific items (items subject to two different types of tax).  Although you have a good idea, it still requires an additional line item and we could just continue using the miscellaneous code.  it would give a tax report, tho.

It would NOT require another line item.  Each item can have up to 5 different sales taxes associated with them. You decide what items are subject to what taxes.

It would NOT require another line item.  Each item can have up to 5 different sales taxes associated with them. You decide what items are subject to what taxes.