Taxonomy Rewrite Rules Redirecting Instead of Masking

I have a custom post type of items set up. I also have a taxonomy set up with items called categories.

functions.php code:

    regsiter_post_type('items',
                array('labels' => array
                    (
                        'name' => 'Items',
                        'singular_name' => 'Item'
                    ),
                    'public' => true,
                    'rewrite' => array
                    ( 
                        'slug' => 'items'
                    ),
                    'supports' => array
                    (
                        'title',
                        'excerpt',
                        'editor',
                        'comments',
                        'revisions',
                        'thumbnail'
                    ),
                    'taxonomies' => array
                    (
                        'categories',
                        'tags'
                    )
                ));
   register_taxonomy ( 'categories', 'items', array('hierarchical' => true,
                    'label' => 'Item Categories',
                    'rewrite' => array
                    (
                        'slug' => 'categories',
                        'hierarchical' => ture
                    )));

require 'rewrites.php'; // load rewrite class
    Rewrites::init(); // call init function in rewrite class

rewrites.php code:

class Rewrites
    {
        // Start class methods

        public static function init()
        {
            // Rewrite urls
            add_action ( 'generate_rewrite_rules', array( __CLASS__, 'rules' ) );

            add_filter ( 'query_vars', array( __CLASS__, 'vars' ) );
        }

        public static function rules ( $wp_rewrite )
        {
            $new_rules = array();
            $new_rules['categories/(.+?)/view/(.+)/?'] = 'index.php?categories=$matches[1]&view=$matches[2]';

            return $new_rules + $wp_rewrite->rules;
        }

        // End class methods
    }

So when looking at posts in the taxonomy of categories the url would be:

/categories/%name_of_taxonomy%/

I need to also append to the url to add in query_vars

/categories/%name_of_taxonomy%/view/%type_of_view%/

%type_of_view% would be a couple different options. list, grid etc.

Here is my rewrite rule:

[categories/(.+?)/view/(.+)/?] => index.php?categories=$matches[1]&view=$matches[2]

But when I go to the url /categories/%name_of_taxonomy%/view/grid/ it redirects back to /categories/%name_of_taxonomy%/