- if ( ($part_pkg->setuptax eq 'Y' or $self->setuptax eq 'Y')
- and $cust_bill_pkg->setup > 0 and $taxable_charged > 0 ) {
+ my $setup_exempt = ( ($part_fee and not $part_fee->taxable)
+ or ($part_pkg and $part_pkg->setuptax)
+ or $self->setuptax );
+
+ if ( $setup_exempt
+ and $cust_bill_pkg->setup > 0
+ and $taxable_charged > 0 ) {