In tax code setup, what is a group sequence?

The group sequence is used to control the order in which tax codes are applied. For example, let's say you have two tax classes (A and B), as well as two tax codes (CODE1 and CODE2). Tax class A is linked to CODE1 and tax class B is linked to CODE2. When both tax codes appear on the same tax assignment, their rates will be applied in sequential order. The sequence is defined by the linked tax classes. The lowest sequence number (i.e., 1) is applied first, followed by the next in descending order.