NOMAD States: Exploring America’s Five States Without Statewide Sales Tax and Their Alternative Taxes

• NOMAD states (New Hampshire, Oregon, Montana, Alaska, and Delaware) do not impose a statewide general sales and use tax.
• These states use alternative tax structures such as gross receipts taxes, business taxes, excise duties, local sales taxes (in Alaska), and specific taxes on items like meals, rentals, and vehicles.
• The absence of a statewide sales tax does not mean a completely tax-free environment; alternative taxes can create complexity for businesses and consumers.
• The decision to avoid sales tax is based on economic and policy reasons, including a preference for lower tax burdens and reliance on other revenue sources.
• Consumers from neighboring states often shop in NOMAD states to benefit from lower prices, impacting business and tax compliance.

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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