The "free" state you're referring to is the state tax preparation program. The $24.99 fee you're referring to is the cost for e-filing your state return. You can avoid that fee by choosing to print and mail your state tax return.
*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***