Tax based on shipping total not the price of cart

I have setup zones (1-3) rather than size/weight of items. The location of the store is in Florida. I setup a specific zone just for Florida which applies 7% tax. Everything works great except the tax is 7% of the shipping total and not the cart total. Any ideas?

That was it! Thank you!
Unfortunately that also applies tax to everything by default until the user signs in...then it removes it if you're in a different state. How can this be setup so the tax is only shown after logging in and seeing that the user is in a taxable state/location?

I found it...I had the Default Tax Category zone set incorrectly. Now it is set to the state in which taxes are applied and seems to be working fine.