I need to create an option for our customers to be able to select store pick-up under shipping that will include Massachusetts State Sales Tax. We still want to be able to ship to customers outside of the state and not apply the Sales Tax but when I change the tax to be calculated to Shipping Origin then this creates a problem for out of state purchases by adding the Sales Tax. How do I have a In Store Pick Up option with Sales Tax included and not affect this?
There are a number of options for Store Pickup via these extensions
To apply tax to purchases from Massachusetts in the admin go to
Sales -> Tax -> Manage Tax Zones and Rates
Click Add New Tax Rate and create the tax rate for Massachusetts and click save.
Then go to Sales -> Tax -> Manage Tax Rules and click Add New Tax Rule. Here you can select your Massachusetts Zone/Rate and create a rule for when and who to apply the Tax Zone/Rate to (i.e. you may apply the rule to general customers but not wholesalers)
Alternatively this blog explains a way to use Flat Rate shipping instead of an extension. The only issue here is that it takes over your Flat Rate shipping turning it into In Store Pickup. This may work for your project but only if you do not need Flat Rate shipping.