I have had 2 orders from Alberta in the past couple of days - both were charged PST, but we don't have a provincial sales tax, and the tax rate for Alberta shows 0% This is a problem - I can, and have refunded the overcharge, but it makes us look pretty silly.
I think this is to do with orders that will be picked up in the store. An attempt is made to ascertain the tax rate for the store location which is normally quite easy as it's just the highest state tax rate. But this goes a bit wrong in Canada because of the different provincial tax rates. So just set the following in your includes.php file... $homestatetaxrate=0; ...or whatever you want to charge as the tax rate for orders that are picked up in your store.