If you see this line item on a sales tax report, it means that you are using a sales tax group item (i.e., you need to
charge more than one sales tax
rate per sale and you've grouped them so that the customer
sees only one sales tax amount). If you use a sales tax group item, some reports show the sale amount once for each sales
tax rate so you can clearly see each amount. The line "Multiple taxes ..." is used to give an accurate total by canceling out duplicated sales figures.
In this example, Rock Castle Construction has a sales tax group item that is composed of three separate sales tax items with flat rates of:
City at .5%, County at 1%, and State at 7%. All of the sales tax collected is payable to the tax agency named CA Tax. The sales tax
liability report shows the amounts owed for each sales tax rate and the total tax owed so that you can complete
your sales tax returns using the correct amounts. "Multiple taxes ..." zeros out the duplicate totals.