I did dig through the posts and it seems this may be unique.
My 'Display Prices with Tax' is false in admin under config->My Store
In Payapl IPN, I have transaction type as Per Item and Move Tax to total amount as False
All of my products are tangible requiring shipment but there is no shipping tax.
To repeat, my problem is...as soon as a customer orders more than one of any product, shipping tax gets passed to paypal even though it does not show on the customer side or admin side of the order.
Thanks for any help.