Kristine,

Thanks for your feedback and insight. I'll use the work-around for now. I'd also recommend adding this as a feature request/backlog item. If a project is assigned to a tax-exempt customer, then the project (in my opinion) should inherit the tax status of the customer (ie: exempt) even if the products/services are taxable.

I can't think of a situation where this would not be the desired result. :)