this post was submitted on 01 Aug 2025
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That's Delaware, for the uninitiated. The tax thing is because there's some lady's house in Delaware that's registered as the headquarters for about a zillion shell companies as a tax dodge, because of something something Delaware business taxes.
It just has a lower business tax rate than most other states, so companies incorporate there. Plus the business laws/courts are pro business (from a business-to-business standpoint).
Also, there's no sales tax, instead there's a mercantile tax (merchant pays tax on sales) . So people from nearby states go there for large purchases (cars, furniture, etc).
All this means is that large companies that incorporate there pay taxes in the state.
It doesn't work on cars. You have to pay the taxes for your state of residence when you register it or when the dealer registers it for you. The reverse occurs if you live in a sales tax free state and you buy a car in a neighboring taxing one.
For stuff that you can carry away with you, you do indeed pay no sales tax with the caveat that you're supposed to self-report this on your state use tax form whenever you do your state's income taxes and pay it then. And 100% of people absolutely, totally, faithfully do this. Scout's honor.
(There is only one interstate rest stop in Delaware. You'll never guess who it's named after. It makes Republicans hopping mad.)
https://www.visitdelaware.com/listing/biden-welcome-center/5168/