Why Is Delaware the only state with tax-free shopping??

Question

I need this for school......Why is Delaware the only state with tax-free shopping?? Please tell me why and when this first happened...

Answer 1

Delaware isn't the only state that doesn't have a sales tax.  Texas doesn't either.  If you are asking about sales tax holidays, just google them and you can find a list.  I think I saw one posted on AOL a few weeks ago.

Answer 2

DE isn't.  Several states don't have a Sales Tax, including OR, NH, and HI.

However don't jump for glee too much just yet.  DE and HI both have a Gross Receipts Tax that is levied upon all businesses.  You can bet your bottom dollar that that tax is built into the price of EVERYTHING that you buy in the State.

My guess is that both DE and HI chose this method as it gets around the "ban" on internet taxes.  Since the tax is levied upon the total receipts from all transactions, EVERY customer indirectly pays the tax even if they are out of state and the seller has no nexus in the customer's state.

Note to AB:  TX most certainly DOES have a Sales Tax!  They don't have an INCOME tax, but Sales Taxes in TX average more than 8% in most areas!