tested it.. left tax setting blank on Power Store. In Pay Pal, set up a couple of zip code areas to charge sales tax for specific area. Tested-live and it did not show any tax due. SO the answer so far is ...no, it does not work. Am going to see if there is away PayPal will let me do it without too much modification ( haha) or perhaps i am doing something wrong. Will reply when I hear back.