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Learn Sales Tax Exemptions In 50 States (Part 2 of 2 Part Blog Post)



Learn Sales Tax Exemptions In 50 States (Part 2 of 2 Part Blog Post)

Montana Sales And Use Tax Exemptions

The state of Montana has no sales tax at the state or local levels. It is one of five states in the U.S. that does not charge a state sales tax.

Nebraska Sales And Use Tax Exemptions

The state of Nebraska levies a 5.5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 2%. The range of total sales tax rates within the state of Nebraska is between 5.5% and 7.5%.

Use tax is also collected on the consumption, use or storage of goods in Nebraska if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 25th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Nebraska on or before February 25th.

Visit https://revenue.nebraska.gov/

Nevada Sales And Use Tax Exemptions

The state of Nevada levies a 4.6% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes between 2.25% and 3.55%. The range of total sales tax rates within the state of Nevada is between 6.85% and 8.15%.

Use tax is also collected on the consumption, use or storage of goods in Nevada if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the last day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Nevada on or before the last day of February.

Visit https://tax.nv.gov/FAQs/Sales_Tax_Information___FAQ_s/

New Hampshire Sales And Use Tax Exemptions

The state of New Hampshire is one of five states in the U.S. that does not charge a state sales tax.

New Jersey Sales And Use Tax Exemptions

The sales tax rate was reduced from 6.85% to 6.625% rate. New Jersey applies sales tax on the retail sale, lease, or rental of most goods and some services. There are no additional local sales taxes in the state of New Jersey. More information is provided below about reduced sales tax rates and major New Jersey sales tax exemptions.

In Salem County, the sales tax rate is 3.5% and the 7% state sales tax rate does not apply. This 3.5% Salem County rate only applies to retail sales of tangible personal property made in person at a place of business located within Salem County.

Use tax is also collected on the consumption, use or storage of goods in New Jersey if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of New Jersey on or before February 20th.

Visit https://www.state.nj.us/treasury/taxation/su.shtml

New Mexico Sales And Use Tax Exemptions

In lieu of a sales tax, the state of New Mexico collects a 5.125% gross receipts tax. Generally most businesses pass along this tax to the consumer, so the gross receipts tax resembles a sales tax. Local jurisdictions impose additional gross receipt taxes up to 7.125%. The range of combined gross receipts tax rates within the state of New Mexico is between 5.125% and 12.25%.

Gross receipts tax returns are to be filed on or before the 25th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Nevada on or before the 25th day of February.

Visit https://www.nm.gov/

New York Sales And Use Tax Exemptions

The state of New York levies a 4% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 4.875%. The range of total sales tax rates within the state of New York is between 4% and 8.875%.

Use tax is also collected on the consumption, use or storage of goods in New York if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of New York on or before the 20th day of February.

Visit https://www.tax.ny.gov/bus/st/stidx.htm

North Carolina Sales And Use Tax Exemption

Beginning on October 1, 2009, the state of North Carolina began levying a 4.75% state sales tax on the retail sale, lease or rental of most goods and some services. All local jurisdictions impose additional sales taxes up to an additional 2.75%. The total sales tax rates within the state of North Carolina can be as high as 7.5%.

Use tax is also collected on the consumption, use or storage of goods in North Carolina if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of North Carolina on or before the 20th day of February.

Visit https://www.ncdor.gov/

North Dakota Sales And Use Tax Exemptions

The state of North Dakota levies a 5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 3%. The range of total sales tax rates within the state of North Dakota is between 5% and 8%.

Use tax is also collected on the consumption, use or storage of goods in North Dakota if sales tax was not paid on the purchase of the goods. The use tax rate is often less than the corresponding sales tax rate in that jurisdiction. Returns are to be filed on or before the last day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of North Dakota on or before the last day of February.

Visit https://www.tax.nd.gov/business/sales-and-use-tax

Ohio Sales And Use Tax Exemptions

As of September 1, 2013, the state of Ohio levies a 5.75% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes ranging between 0.75% and 2.25%. The range of total sales tax rates within the state of Ohio is between 6.5% and 8%.

Use tax is also collected on the consumption, use or storage of goods in Ohio if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 23rd day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Ohio on or before the 23rd day of February.

Visit https://tax.ohio.gov/business/ohio-business-taxes/sales-and-use/sales-use-tax

Oklahoma Sales And Use Tax Exemptions

The state of Oklahoma levies a 4.5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 6.5%. The range of total sales tax rates within the state of Oklahoma is between 4.5% and 11%.

Use tax is also collected on the consumption, use or storage of goods in Oklahoma if sales tax was not paid on the purchase of the goods. Frequently, the use tax rate is the less than the corresponding sales tax rate in the same jurisdiction. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Oklahoma on or before the 20th day of February.

Visit https://oklahoma.gov/tax.html

Oregon Sales And Use Tax Exemptions

The state of Oregon is one of five states in the U.S. that does not charge a state sales tax.

Visit https://sos.oregon.gov/business/Pages/default.aspx

Pennsylvania Sales And Use Tax Exemptions

The state of Pennsylvania levies a 6% state sales tax on the retail sale, lease, or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 2%. Total sales tax rates within the state of Pennsylvania ranges between 6% and 8%.

Use tax is also collected on the consumption, use or storage of goods in Pennsylvania if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Pennsylvania on or before the 20th day of February.

Visit https://www.revenue.pa.gov/TaxTypes/SUT/Pages/default.aspx

Rhode Island Sales And Use Tax Exemptions

The state of Rhode Island levies a 7% state sales tax on the retail sale, lease or rental of most goods and some services. There are no local sales taxes in the state of Rhode Island.

Use tax is also collected on the consumption, use or storage of goods in Rhode Island if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Rhode Island on or before February 20th.

Visit https://tax.ri.gov/tax-sections

South Carolina Sales And Use Tax Exemptions

The state of South Carolina levies a 6% state sales tax on the retail sale, lease, or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 2.5%. Total sales tax rates within the state of South Carolina ranges between 6% and 8.5%.

Use tax is also collected on the consumption, use or storage of goods in South Carolina if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of South Carolina on or before the 20th day of February.

Visit https://dor.sc.gov/tax/sales-and-use

South Dakota Sales And Use Tax Exemptions

The state of South Dakota levies a 4% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 2%. The range of total sales tax rates within the state of South Dakota is between 4% and 6.5%.

Use tax is also collected on the consumption, use or storage of goods in South Dakota if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. The due date for returns varies depending on whether you file a paper return or an electronic return. Paper returns are to be postmarked on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of South Dakota on or before the 20th day of February. Electronic returns are to be filed by the 23rd day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be electronically reported to the state of South Dakota on or before the 23rd day of February.

Visit https://dor.sd.gov/businesses/taxes/

Tennessee Sales And Use Tax Exemptions

The state of Tennessee levies a 7% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes ranging between 1% and 2.75%. The range of total sales tax rates within the state of Tennessee is between 8.5% and 9.75%.

Use tax is also collected on the consumption, use or storage of goods in Tennessee if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Tennessee on or before the 20th day of February.

Visit https://www.tn.gov/revenue/search-results.html?q=sales+and+use+tax+exemption#q=sales%20and%20use%20tax%20exemption&t=department&sort=relevancy   

Texas Sales And Use Tax Exemptions

The state of Texas levies a 6.25% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 2%. The range of total sales tax rates within the state of Texas is between 6.25% and 8.25%.

Use tax is also collected on the consumption, use or storage of goods in Texas if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Texas on or before the 20th day of February.

Visit https://comptroller.texas.gov/taxes/sales/

Utah Sales And Use Tax Exemptions

The state of Utah levies a 4.65% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes ranging between 1.3% and 3.4%. The range of total sales tax rates within the state of Utah is between 5.9% and 8.1%.

Use tax is also collected on the consumption, use or storage of goods in Utah if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the last day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Utah on or before the last day of February.

Visit https://tax.utah.gov/sales

Vermont Sales And Use Tax Exemptions

The state of Vermont levies a 6% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions can impose additional sales taxes of 1%. The range of total sales tax rates within the state of Vermont is between 6% and 7%.

Use tax is also collected on the consumption, use or storage of goods in Vermont if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 25th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Vermont on or before the 25th day of February.

Visit https://tax.vermont.gov/business-and-corp/sales-and-use-tax

Virginia Sales And Use Tax Exemptions

The state of Virginia levies a 4.3% state sales tax on the retail sale, lease or rental of most goods and some services. All local jurisdictions impose additional sales taxes of 1% to 1.7%, therefore the total sales tax rate within the state of Virginia could be as high as 6%.

Use tax is also collected on the consumption, use or storage of goods in Virginia if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Virginia on or before the 20th day of February.

Visit https://www.tax.virginia.gov/sales-and-use-tax

Washington Sales And Use Tax Exemptions

The state of Washington levies a 6.5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes ranging between 0.5% and 3.3%. The range of total sales tax rates within the state of Washington is between 7% and 9.9%. Since July 1, 2008, the state of Washington has changed the way in which local sales taxes are to be collected. The local sales tax will now be based on the destination rate of the delivery.

Use tax is also collected on the consumption, use or storage of goods in Washington if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 25th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Washington on or before the 25th day of February.

Visit https://www.dor.wa.gov/

West Virginia Sales And Use Tax Exemptions

The state of West Virginia levies a 6% state sales tax on the retail sale, lease or rental of most goods and some services. Some local jurisdictions, such as the cities of Charleston, Huntington, Wheeling and other cities assess an additional 1% local sales tax.

Use tax is also collected on the consumption, use or storage of goods in West Virginia if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of West Virginia on or before February 20th.

Visit https://tax.wv.gov/Business/SalesAndUseTax/Pages/SalesAndUseTax.aspx

Wisconsin Sales And Use Tax Exemptions

The state of Wisconsin levies a 5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions can impose additional sales taxes of 0.6%. The range of total sales tax rates within the state of Wisconsin is between 5% and 5.6%.

Use tax is also collected on the consumption, use or storage of goods in Wisconsin if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Wisconsin on or before the 20th day of February. For more information on Wisconsin sales tax exemptions please visit the sites shown below.

Visit https://www.revenue.wi.gov/Pages/SalesAndUse/Home.aspx

Wyoming Sales And Use Tax Exemptions

The state of Wyoming levies a 4% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions can impose additional sales taxes of up to 2%. The range of total sales tax rates within the state of Wyoming is between 4% and 6%.

Use tax is also collected on the consumption, use or storage of goods in Wyoming if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the last day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Wyoming on or before the last day of February.

Have a question on sales tax exemptions? Contact Aaron Giles, Giles Consulting Team.

(Part 2 of 2 Part Series)

VIEW: Learn Sales Tax Exemptions In 50 States (Part 1 of 2 Part Blog Post)

Aaron C. Giles is the Founder and President of Agile Consulting Group. Aaron spent five years working within the specialty niche of Sales & Use Tax at Brown & Associates before forming his own firm in 2005. He has worked hundreds of audits in states all across the U.S. during that time and has delivered savings of over $75M in the form of refunds and credits to his clients. Today, he leads a group of talented, detail-oriented colleagues who focus exclusively on Sales & Use Tax.

Some of our firms’ greatest achievements have come in successfully arguing new and unique perspectives to existing tax law in various states enabling our clients to claim exemptions on categories of purchases previously held to be taxable. Included in these victories are: communication services taxes for religious nonprofit hospitals in FL, bulk purchases of drugs in VA, specific surgical tools and instruments for healthcare providers in TX, printing plates in GA, railroad utilities in KY, and most recently software in AL.

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