I have created a new project, Bower. I set up all of the areas and then went to the catalogue that we set up and selected all of the bath items and copied them to the project. The tax codes are set up on the catalogue as Tax on client and Non on PO. When I look at the item on the project, the tax fields are blank.
See attached screen shots
Thanks for bringing this up- we'd left off the tax status copy because often the tax status changes on items. I could see how that would be confusing though, and we'll look into updating the copy function to include the tax status as well.
We've updated the Catalogue copy feature to now include the taxable status so that should transfer over to new items.