Pheasant

Hello everyone, New to the forum...hope you can help.

I have been building my wife's site for some time now.

http://www.myyarnboutique.com

We sell specialty yarn and accessories. We also live in New York and even when the State gives us a tax break they screw things up. Our normal tax on items is 8% but for clothing related materials, yarn and buttons, the tax is 4%.

Currently I am using only PayPal as a shop cart. PayPal will let me set up a tax for NY and separate taxes for the rest of the country, in this case I want it to be $0 tax for the rest of the country.

But PayPal will only let me set up one tax instance for NY and since I need to charge 4% for some items and 8% for others, that won't work.

I can set up taxes for each item in my HTML code so that would allow my to charge the required 4% and 8% but when I do this, EVERYONE in the country gets charged tax.

So my question is, Can I set it up in my code to only charge NY residents tax? Or can anyone see a more eloquent way around this problem?