It is working now and here are the steps. Under:
Manage Tax Rules
There is a rule “Retail Customer-Taxable Goods-Rate 1”
Under Customer Tax Class* there is only Retail Customer which is highlighted.
Product Tax Class* lists, default, Taxable Goods and Shipping, with Taxable Goods highlighted.
Under Tax Rate* are my two rates for 80516 and 80000, however neither is selected.
Priority and Sort Order are set to 1.
I used Control to select both tax rates and it worked. I’m now being tax at scandalous rates. Is this the right solution?
Comment - lots of little, easy to miss, steps to tie it together.