I have set up 3 zones (the store is located in Maryland) under Locations/taxes -> Zone definitions.

1) Maryland
2) Shp: US
3) Shp: CA - canada

Maryland is a Tax Zone

- Select Maryland, and click on Tax Rates.
- Tax Class Title = Taxable goods
- Zone = Maryland
- Tax rate = 5.0000%
- Description = MD TAX 5.0%
- Priority = 1

Now for MZMT under shipping, I have it setup like so:
- Geo Zone 1 = Shp: US
- Tax Class = taxable goods
- Tax Basis = store (supposedly so anything bought in the same tax zone as the store gets taxed)
- Sort order = 1
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- GeoZone 1 = Shp: US
- Table Method = price
- Handling fee = 0
- Then I have my shipping rates tables 1-4
-------------------
- GeoZone 2 = Shp: Canada
everything is the same as GeoZone 1, but I add a $10 handling fee.


Now here's the problem...

When test ordering from outside the state of MD everything is fine.
When ordering from within Maryland, where the order info is the Tax is zero. When you go to the right, where shipping is added, it says MD tax 7%. It calculates the tax on shipping only but as far as I can tell it calculates it correctly at 5% of shipping. However, the tax on the merchandise is not added.

Any clues as to what's goin ong here? IT shoudl say MD tax 5% and the tax should be added to the total, but it's not.

Thanks,

Brain21