Tuesday, September 18, 2007

What states DON'T have a sales tax

There are five states that have no state-wide sales and use tax:

Alaska
Oregon
Montana
New Hampshire
Delaware

This is not terribly useful information unless you're in those states (and therefore already know that there's no tax). But the rest of you shouldn't get excited. Go to those states and buy something tax free, and you'll still owe the use tax when you return to your state.

But this is a great trivia question at parties! Beware though. I've tried it, and it seems like everyone leaves pretty soon afterwards.





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6 comments:

west3472 said...

I have heard that you can buy an RV in a non sales tax state and if you live on the road (no state residency) - you don't have to pay taxes for it! Any truth?

Jim said...

Good question. I've given you my thought here.

http://salestaxguy.blogspot.com/2007/10/avoiding-tax-on-your-rv.html

Beth Harris said...

I'm a US citizen who lives in, and owns a business in, Western Australia.

I would like to open up a supply for hard to find computer items via the US. However, most of the vendors will either not ship or sell to non-US addresses, or they want an arm, leg, and all rights to your first-born child for postage and handling.

I have family in Washington State, Nevada and Montana as well as Florida to whom I can ship goods to then be repackaged for shipment to Australia. If that were "kosher" (I can't seem to get a consensus).

I'm also quite happy to set up a shelf company in Nevada as (an export LLC that is a division of my Propritary Limited company here in Australia)

If the goods are bound for resale in Australia (I own a "niche-market" computer and IT Business), and I'm going to have to pay import duty, and eventually G.S.T. [goods and services tax] of 10% on top of that - Can I get exemption from Sales tax at time or purchase or a rebate on sales tax paid?

Even with the costs of shipping and handling and the dollar exchange rate there is still enough margin in some hard-to-find items to make this a worthwhile effort, but obviously the fewer hands taking their share of my would-be profits the better.

I am fortunate enough to be married to a Chartered Management Accountant so once I know the "legal ropes" I can confidently delegate all the detail paperwork to his very capable Scottish hands.

I'd love to get your take on my best options.

Cheers,

intravertbm said...

Thats not totally true, if you are active duty Military you can go to any of these states and purchase and never have to pay sales tax. I did it with my Beemer, i had it shipped to Oregon from the factory already paid for, NO TAX. When i registered it i get "non-resident" status and still end up paying zero tax. It costs me about 120 bux each year to register for tags and what not but no 3-4000 dollars on the purchase.

intravertbm said...

Yes i know its very "shady" but theres actually nothing saying you cant do this. It just isnt a very well known "perk" of being active duty military from a different state than where you are stationed in. If however you are from the state you are station, you are out of luck.

Jim Frazier said...

I would disagree with you. Some states have exemptions for military personnel, but I wouldn't guarantee it's universal. Frankly, haven't looked.

And you're right - it's shady. This site is not about shady, it's about the law. The fact that you might be able to arrange things so that they can't catch you isn't the point.

Again, you should check the state law where you're stationed to make sure they give the exemption for military.