Taxes charged on shipping when using free shipping coupon

[binary]

I have installed a free shipping coupon and I charge tax on shipping. Since the coupon just takes the dollar amount off, the tax is still being charged on the shipping. Here is a test order I ran:

Sub-Total: $25.00
Canada Post (Shipping to CA): $7.50
Discount Coupon: xxxxxxxx: -$7.50
5.0% GST + 7.0% PST (BC): $3.00
5.0% GST on shipping + 7.0% PST on shipping: $0.90
Total: $28.90

Is there anything I can do so that the shipping tax does not get applied on an order when using the free shipping coupon?

Thanks!

[Rebelwax]

I'm getting the exact same problem

[Rebelwax]

It's so strange....all my tax calculations worked perfectly in 1.3.7. I have the exact same settings in 1.3.8a and it's not calculating properly. I've been trying to find a solution for weeks and I have found nothing. I wonder if 1.3.8a had it's order total rewritten or something.

[Rebelwax]

For those who want to know...i managed to fix this by taking the whole ot_total folder from 1.3.8a and replaced it with the older 1.3.7 folder and all it's contents. Now everything is working like it should.

[oberheimer]

Thanks for the help it is working now

i was pulling my hair the whole afternoon so