Why is Some Internet Shopping Tax-Free?
Many people are pleasantly surprised when Internet shopping is tax free. However, not all Internet shopping is tax free-it depends very much on where you live, and where the company from which you are ordering is located. In most cases, you are only assessed sales taxes on products you purchase from an Internet company that is located in your state. If you order outside your state, purchases are generally tax free. There are a few states where all purchases are tax free. Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon do not have a sales tax. So even if one lives in one of these states, most Internet purchases from companies in the home state are not taxed. If one visits and shops in another state that applies sales tax, one usually cannot make tax free purchases. However, if one is physically in that state at the time of purchase, one may be benefiting from some things the taxes pay for, like good roads. Conversely, shopping on the Internet means one is not physically in t
