Summary of States That Do Not Have Sales Tax
Alaska - As mentioned above, Alaska does not collect sales tax. Petroleum drives the economy in Alaska, and its government does not need to collect additional revenue to fund the Alaskan economy. In fact, Alaska pays its residents to live there. Every resident, including children, receives a payment or dividend each year from the Alaska Permanent Fund Corporation.
Delaware does not collect sales tax from its residents. However, the state does collect a tax on the gross receipts of most businesses. Gross receipt means that business expenses are not figured into the sales revenue. Therefore, it is the responsibility of each individual business to turn in their sales records to the state government. Business owners shoulder the burden of a sales tax not paid by each customer.
Montana does not collect sales tax but does collect income and property tax. Montana's natural resources – such as coal, forests, oil, and natural gas – help supplement the state's economy. In addition, only Oregon's tax collection system mirrors Montana's. Montana is one of the only states that allows residents to fully deduct their federal income tax from their adjusted income when filing taxes.
New Hampshire - Residents who live in New Hampshire do not have to pay sales tax. They do however have to pay meal and rental taxes. Visitors and residents can expect to pay an 8% tax when they visit hotels and restaurants. Car rentals are also subject to the 8% sales tax. On an interesting note, New Hampshire is one of the only states to have a gravel tax. Residents who remove more than 1,000 cubic yards of gravel are subject to a tax whether it is sold or gifted.
Oregon's state government mirrors the Montana sales tax structure. Oregon collects both income and property taxes. Oregon boasts itself as a major tourist destination and uses their tax free platform as a springboard to an incentive to visit Oregon.