Hi womandi,
There is actually a defect in our system that prevents sellers from specifying sales tax when the "Local Pick-up Only" shipping option is selected. Therefore, in order to post this listing successfully, you will need to make sure the "Charge" field is blank and "Select" is chosen from the adjacenty "State of" drop-down menu. You could then potentially add the tax to the listing using eBay's "Revise your Item" form once it is active.
Any additional questions or concerns? Please feel free to contact our customer support team using the appropriate link on our help page: http://www.auctiva.com/free-auction-software-help/help.aspx
-Mike