payment

are two payment methods cash on delivery and paypal, in cash on delivery does not include something for no tax delivery, maybe someone is from the same city with the store holder and the person who placed an order will want to pick up the product from the store, or is sometihing and i dont know

should be shipping method with fixed tax, non tax or custom, and at the next step payment method should be payement on delivery and pick up from store

If you are looking for a "Pickup from Store" shipping module, then you could simply clone the Cash on delivery one and retitle it.