diff --git a/lib/reporting/reports/sales_tax/sales_tax_totals_by_producer.rb b/lib/reporting/reports/sales_tax/sales_tax_totals_by_producer.rb
index 0271b38d59..a2c00ea082 100644
--- a/lib/reporting/reports/sales_tax/sales_tax_totals_by_producer.rb
+++ b/lib/reporting/reports/sales_tax/sales_tax_totals_by_producer.rb
@@ -24,9 +24,9 @@ module Reporting
           # [tax_rate, supplier_id, distributor_id and order_cycle_id]
           report_line_items.list
             .flat_map do |line_item|
-              line_item.tax_rates.map do |tax_rate|
+              line_item.adjustments.eligible.tax.map do |tax_rate|
                 {
-                  tax_rate_id: tax_rate.id,
+                  tax_rate_id: tax_rate.originator_id,
                   line_item:
                 }
               end
diff --git a/spec/system/admin/reports/sales_tax/sales_tax_totals_by_producer_spec.rb b/spec/system/admin/reports/sales_tax/sales_tax_totals_by_producer_spec.rb
index 964537a037..b1d319b887 100644
--- a/spec/system/admin/reports/sales_tax/sales_tax_totals_by_producer_spec.rb
+++ b/spec/system/admin/reports/sales_tax/sales_tax_totals_by_producer_spec.rb
@@ -3,7 +3,7 @@
 require 'system_helper'
 
 describe "Sales Tax Totals By Producer" do
-  #  Scenarion 1: added tax
+  #  Scenario 1: added tax
   #  1 producer
   #  1 distributor
   #  1 product that costs 100$
@@ -30,6 +30,7 @@ describe "Sales Tax Totals By Producer" do
   let!(:state_tax_rate){ create(:tax_rate, zone: state_zone, tax_category:) }
   let!(:country_tax_rate){ create(:tax_rate, zone: country_zone, tax_category:) }
   let!(:ship_address){ create(:ship_address) }
+  let(:another_state){ create(:state, name: 'Another state', country: ship_address.country) }
 
   let!(:variant){ create(:variant) }
   let!(:product){ variant.product }
@@ -69,9 +70,7 @@ describe "Sales Tax Totals By Producer" do
                       ship_address_id: ship_address.id
                     })
 
-      while !order.completed?
-        break unless order.next!
-      end
+      OrderWorkflow.new(order).complete!
     end
 
     it "generates the report" do
@@ -119,6 +118,54 @@ describe "Sales Tax Totals By Producer" do
     end
   end
 
+  context 'Order not to be shipped in a state affected by state tax rate' do
+    # Therefore, do not apply both tax rates here, only country one
+    before do
+      ship_address.update!({ state_id: another_state.id })
+      order.line_items.create({ variant:, quantity: 1, price: 100 })
+      order.update!({
+                      order_cycle_id: order_cycle.id,
+                      ship_address_id: ship_address.id
+                    })
+
+      OrderWorkflow.new(order).complete!
+    end
+
+    it 'generates the report' do
+      login_as admin
+      visit admin_reports_path
+      click_on 'Sales Tax Totals By Producer'
+
+      run_report
+      expect(page.find("table.report__table thead tr").text).to have_content(table_header)
+
+      expect(page.find("table.report__table tbody").text).to have_content([
+        "Distributor",
+        "Yes",
+        "Supplier",
+        "Yes",
+        "oc1",
+        "tax_category",
+        "Country",
+        "2.5 %",
+        "100.0",
+        "2.5",
+        "102.5"
+      ].join(" "))
+
+      expect(page.find("table.report__table tbody").text).to have_content([
+        "TOTAL",
+        "100.0",
+        "2.5",
+        "102.5"
+      ].join(" "))
+
+      # Even though 2 tax rates exist (but only one has been applied), we should get only 2 lines:
+      # one line item + total
+      expect(page.all("table.report__table tbody tr").count).to eq(2)
+    end
+  end
+
   context 'included tax' do
     before do
       state_tax_rate.update!({ included_in_price: true })
@@ -130,9 +177,7 @@ describe "Sales Tax Totals By Producer" do
                       ship_address_id: ship_address.id
                     })
 
-      while !order.completed?
-        break unless order.next!
-      end
+      OrderWorkflow.new(order).complete!
     end
     it "generates the report" do
       login_as admin
@@ -308,9 +353,7 @@ describe "Sales Tax Totals By Producer" do
                       ship_address_id: customer1.bill_address_id,
                       customer_id: customer1.id
                     })
-      while !order.completed?
-        break unless order.next!
-      end
+      OrderWorkflow.new(order).complete!
 
       order2.line_items.create({ variant:, quantity: 1, price: 200 })
       order2.update!({
@@ -318,9 +361,7 @@ describe "Sales Tax Totals By Producer" do
                        ship_address_id: customer2.bill_address_id,
                        customer_id: customer2.id
                      })
-      while !order2.completed?
-        break unless order2.next!
-      end
+      OrderWorkflow.new(order2).complete!
       login_as admin
       visit admin_reports_path
       click_on 'Sales Tax Totals By Producer'