Pennsylvania IRA indirect rollover question

Took an IRA from one bank and 100% rolled over to another IRA, at another financial institution within a week. TT seems fine with federal side, however PA state side showing taxes owed, on money i didn't receive, even though in the section "State code" the "Rollover" option was selected. (should it be something else?)

1099R Box 7 = 1

Any suggestions would be appreciated.

 

John