States without Sales Tax

Lesson Exercise Solution

Did you know that some states do not have a state sales tax?

They are as follows:

As a tax advisor, you should be able to recognize the special status of these states.

Note that some states require those who purchase items from other states where there is no sales tax to pay a use tax in his home state.

You were recently discussing the state sales tax situation in Colorado with Eric Martinez.

Does Eric have to pay a state-wide sales tax?

Colorado has a state-wide sales tax.