Ah, ok, that makes sense then...
The only selections I have are "Default Tax Category" and "No". Being that I would set it to "No", that will correct the issue with taxing the shipping no matter where they are...but won't this cause no tax to be collected on the shipping for an in-state purchase?
If so...is there any way to make it collect tax on any in-state purchase for the shipping or no? If not...it's not a huge deal, in 2.5 years I think I've only had 2 or 3 sales in state. Most of what I do is out of state, Canada, Europe, and some South America.