In the category of nutty sales and use tax exemptions, these states impose no tax the sale of flags. In all cases there is no sales tax on the US flag. And most exempt theirs as well.
Connecticut - US and CT
Florida - US and FL
Maryland - US and MD
Massachusetts - US only
New Jersey - US and NJ
New York - US and NY
Pennsylvania - US and PA
Rhode Island - US and RI
Vermont - US flag only, and only for sales to or by nonprofit veterans organizations
Virginia - US , VA and local flags if sold by government agency
West Virginia - US and WV - regulation size only
Wisconsin - US and WI
This is an article I've been meaning to right for a while; frankly, ever since I came across this exemption for the first time. I'm guessing that the US exemptions were enacted in some fit of patriotic fervor on the part of the politicians. But the state flags? And nobody is going to vote against the law, or argue to repeal it because they would be toasted in the campaign commercials.
Imagine the youtube video, "Joe Blow, your representative, actually voted to repeal the sales tax exemption for the US Flag. What kind of American is he?? Vote for Tom Jones and he'll reinstate the exemption as soon as he takes office!"
And why give the exemption anyway? Are people buying more flags in those states because of the exemptions? If you drive through the residential areas of Milwaukee, will you see a lot of Wisconsin state flags flying proudly below all of the US flags?
Heck, I'll bet that most retailers in those states charge sales tax anyway because the sales tax software company didn't program this one - they didn't even know about it! Who would have thought?
Now, of course, they will. Because I just know they all read this blog. Sure. And Santa's coming in a few days too.
Have a nice weekend, folks.
Sales Tax Guy
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