Developments in Sales Tax Exemptions

Over the past few years, state government budgets suffered by finally having to more accurately disclose the unfunded liabilities and current costs for employee pensions and retiree health care. The fiscal problems grew worse last year from the loss of tax collections because of the economic lock-downs imposed by state governments.

As a result, state governments across the country are scrambling to find new ways to increase tax collections. Among the avenues being pursued are to more aggressively force out-of-state sellers to a state’s residents to charge, collect and remit sales and use taxes, to raise tax rates, to increase fees, and to eliminate some existing sales and use tax exemptions.

There are currently five states (Alaska, Delaware, Montana, New Hampshire and Oregon) that impose no sales taxes at all. There are another 34 states that have complete or partial sales and use tax exemptions on the retail sales of coins and precious metals bullion.

In a 2016 national survey, the Industry Council for Tangible Assets (ICTA) confirmed