I can't seem to find anywhere that says Virtual products in Magento cannot be taxed.
There is a weird occurence that I have discovered.
If I have ONLY virtual items in my shopping cart with a Product Tax Class assigned to them, no tax is displayed or calculated after entering a taxable zip code.
If I have at least ONE non-virtual item (simple for example), then tax is calculated for ALL of the virtual items, and the simple.
Is this a bug, or am I missing something?