Ok great, that helped. Originally I guess the state field was a text field I did not realize it can be connected to Zones which is ideal, so I created my own dropdown.
Now I modified it and it is choosing existing state zones.
The problem I have now is that when I choose an address with NJ, it displays an error at the top: No Payment methods found (the text shows, which is good)
When I switch the address to show a different state, the tax does not show, which is great as well, but I get this error: No Shipping methods found
Any ideas of what I could have done to cause this?
Thank you!