Can we calculate tax by state?

I am attempting to calculate tax by the state which the user selects from the shipping address using your PayPal Pro add-on.

The information here http://www.gravityhelp.com/documentation/page/Gravity_Forms_Pricing:_Adding_Tax was a little vague because the merge tags may not work so well when you have multi choices items that are separate options. Or I could just have the formula incorrect.

Is this possible? I only want to charge tax when someone's shipping address is in California.

i, I looked into this as well. Here is how I solved the whole tax issue without hacking at the plugin:

I added a product, removed the quantity field and set the type to calculation. That is how I get one type of tax calculated. The formula I set is ({Select your Table:2}*{Number of Tables:4})*0.13

In this example the table is the product and the number of tables is the quantity.
The result is an extra item that is the tax, so you don't really need any crazy mods to the plugin.

Also, for state specific taxes, add one such product field per state and use conditional logic to bind it to the states (such as "if state is California then display field" that would be the conditional logic for the California tax product).

That way taxes show up as a separate entry in your DB.

Hopefully it makes sense, it fixed my issue within 5 minutes, and didn't even have to get my hands dirty.