Suppressing Local TAx type "M" if employer chooses not to deduct?

World 9.3    

How does none suppress the tax type 'M" if an employer does not want to extend the courtesy of withholding?

We have tried the following:

Removed the tax 'M' associated with the residence Geocode in Tar Rate Area Setup.... the tax still calculates with no description.

Tried to override it with 'zero'  on Tax overrides screen .. tax still calculated.

I cannot removed the residence Tax area as we are withholding the school district tax.

Any assistance is appreciated.