Problem Setting Up Local Sales Tax

[midnightwalker]

Here is what I have done so far.

In admin>configuration>my store

I have set the basis of product tax to: shipping
And set basis of shipping tax to: shipping

In admin>location/taxes>zone definitions

I set up a zone named California and I have two tax rates set-up under it.

the first tax rate setting are:

priority: 1
Tax Class: taxable goods
Zone: California
Tax Rate: 8.25

the second tax rate setting are:

priority: 1
Tax Class: Pasadena
Zone: California
Tax Rate: 1.5

Now, my problem is that when I test ship to a Pasadena address the tax rate is calculated at 8.25 instead of 9.75.

Could anyone tell me what I need to change to get this right!

[Exalt]

are your priorities set the same?