As a quick followup to my earlier post on the impact of the internet sales tax, I wanted to share with you the list of states that do not (currently) collect sales and use taxes.
As of this writing, there are five such states, including: Alaska, Delaware, Montana, New Hampshire, and Oregon.
But that’s not to say that these states balk at such taxes entirely…
In one case (Alaska), local jurisdictions are allowed to implement their own sales taxes. In another case (Delaware), the state has enacted a tax on gross business receipts that serves a similar role. And yes, consumers are still the ones that are (effectively) paying this tax — in the form of higher prices.
In other cases, the states still tax their visitors. For example, communities that cater to tourists in Montana can assess local-option and recreational taxes. Similarly, restaurant meals, hotels, and car rentals are taxed in New Hampshire.
And finally, residents of Oregon are not allowed to claim sales taxes paid to other states as deductions against their state income taxes.
All others states (plus DC, Guam, and Puerto Rico) collect sales and use taxes.