Yes Anna, the error is the same. It does not matter which state I choose. I have also created a Tax Rate for California and tested, the behavior is the same. These are just some examples which I have created to test. Please see the attached snapshot.
Another thing which I wanted to point out which you might want to consider later – I know WC Vendors settings just transfers the Tax collected at WooCommerce to Vendors, there is no separate setting in WC Vendors for the vendors to be able to do their own setting for Taxes. But think about it, each vendor has a different Tax situation based on which state he lives, how he wants to set the taxes. Having the Admin set the taxes for the vendors is not appropriate. An Arizona vendor might only want to charge taxes for orders from customers in Arizona but these settings are not possible in his store. If he chooses the standard rate, then the taxes gets applied to all his customers, no matter which state they are from.
Thank you for your consideration.
Malavika