Tax not being adding to shipping

  • After upgrading from WP 4.1.5 and WooCommerce 2.2.10 to the current versions WP 4.2.2 and WooCommerce 2.3.8, the tax is no longer being added to the shipping where applicable. I checked these places and the settings are the same now and before the upgrade:

    1. Tax -> Tax Options -> Shipping Tax Class: Standard
    2. Tax -> Standard Rates: Shipping box is checked for the only tax rate I have, which is 7.5% for California.
    3. Shipping -> Flat Rate -> Tax Status: Taxable

    I entered a California zip code for shipping at checkout and only the product price is taxed, not the product + shipping like it did originally.

    Is there another setting I should be checking?

    Thanks for your time!

    https://www.ads-software.com/plugins/woocommerce/

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