Our system compares where your address is and where the buyers address is and charges the Tax1 if both your states match.

It charges Tax 2 if your country and your customer's country both match (this does not apply to the US).

The only other time our system will charge tax is if the customer indicates that they will pick up the item as the system assumes the sale will take place in your home state and it doesn't matter where the client is from. And this is what is happening. You'll notice that tax has only been charged to customers who have indicated that they will pick their order up.

If you need to charge your state's tax, regardless of where you or the customer lives then you need to press the tax override button in the admin. It will then force this tax on any sale. You should then turn off taxation calculations in PayPal to avoid the double taxation.