Thanks, indeed it was one of the options but we decided not go to that direction as discount would mess up our reports. Instead we created a menu item called Chicago Bag Tax with the price of 0.07 with tax forgiven option. We ring it up any time a customer gets a bag and have reporting configured to handle and accounting to properly distribute it so it goes against taxes. I'm surprise that Micros doesn't have this type of option build in. Thanks for your suggestions.