I understand that if you put the correct local tax rate, things come up okay. It should be automatic as PTO knows where the taxpayer lives.
No, it doesn't know where people live. What you have entered are only the mailing address at the time of filing and state residency during the tax year in question (but only if state return is required). There are not sufficient details for PTO to determine the locality and the period of residency, except for jurisdictions where local returns are required.
Of course you can have additional input fields built in just for that purpose but that's different from saying that PTO already has the details needed to automate the computation. Costs/benefits of the programming and its ongoing maintenance would be a consideration - and that would be for Intuit to decide.
Still an AllStar