Just talked to them about this as well. They suggested adding Pick Up Only items as service products and enabling tax on them. No shipping will be charged, however, as with the other work arounds additional items can be added and shipped. I tried it out and felt I had to add "(Pick Up Only)" to the Product name so it is listed at checkout. I also added "additional info" to the product explaining to pick the local pick up shipping option for anything else they ordered as well.
it ain't pretty but it is workable. Just not very professional looking. Per item shipping is needed.