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Tax included in Net PO Price

In the below illustration, my issue is the amount shown on the tax condition line within pricing schema and need help on how to fix it:

Net PO Price is correct 1070 (PIR 1000 + 7% tax based on tax code assignment)

Tax condition is taxing what is already taxed - it shows 74.90 (1070*.07 again). I need it to show 70.

What am I doing wrong? Here are my screens to show my settings....

2.png (37.8 kB)
3.png (63.8 kB)
1.png (58.2 kB)
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