Five states do not impose a sales tax. Sales tax people often use the acronym NOMAD to remember the list:
New Hampshire
Oregon
Montana
Alaska
Delaware
Jinenglish68 is correct that you generally can't avoid the tax by making your purchase in one of these tax-free states. The tax owed by the buyer when the retailer does not charge sales tax is usually called a "use tax." Use tax in your home state can be avoided if first use of the product is not in the state. For example, if you buy a computer in Oregon and turn it on in Oregon before bringing it home, your first use has occurred, and no other state can charge you the use tax. This rule is more complicated, however, with large purchases such as automobiles, yachts, and airplanes. There are still some planning opportunities with these types of purchases, but you should consult a sales tax professional and a respected CPA firm to ensure you take the proper steps.
2006-11-16 04:17:24
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answer #1
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answered by Eduardo Fisher, San Jose, CA 3
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While several states do not charge sales tax, unless you live in one of those states you will be liable for Use Tax when you bring that purchase back to your state of residence. Very few individuals actually comply with Use Tax laws, but there are out there and you might be the one that gets caught.
2006-11-16 01:02:16
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answer #2
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answered by jinenglish68 5
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Delaware has no tax on merchandise
Delaware has 6 different income tax brackets, ranging from 2.2% to 5.95%. The state does not assess sales tax on consumers. The state does, however, impose a tax on the gross receipts of most businesses. Business and occupational license tax rates range from 0.096% to 1.92%, depending on the category of business activity
from wikpedia
reposted without permission from the author
2006-11-15 17:41:34
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answer #3
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answered by gallow 5
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the guy that said florida is wrong. florida has sales tax of at least 6%. he's thinking of income tax--none in FL. Try new hampshire for zero sales tax.
2006-11-16 00:14:33
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answer #4
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answered by Ovrtaxed 4
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Oregon
2006-11-15 17:41:29
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answer #5
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answered by Jessy 5
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Florida
2006-11-15 17:46:42
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answer #6
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answered by virgilya b 1
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