SALES TAX TUESDAY 2018 - Summer Vacation

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Looking for someplace to travel this summer within the continental United State where you won’t pay state sales tax?  If so then consider Delaware, Montana, Oregon, and New Hampshire where there is no state sales tax on anything.  That’s not to say that you won’t pay ‘any’ sales taxes or other ‘taxes’ that may impact your stay.

What About Delaware?

While Delaware prominently promotes its sales-tax free status, in fact, driving through, you might even see a sign on the state borders advertising, "Home of Tax-Free Shopping". 

Let's see what there is to see in Delaware.  Besides being a good 'corporate and insurance domicile state', there are one of two things that might attract you to Delaware besides their 'tax free shopping' promotions.

Take in Bombay Hook National Wildlife Refuge operated by the U.S. Fish & Wildlife Service. This refuge is an important stop on the Delaware Bay for thousands of migrating shorebirds as they make their critical trips to and from their breeding grounds. At low tide they can be seen feeding by the thousands on the salt marsh mudflats along the wildlife drive. The refuge’s freshwater impoundments provide habitats during the late summer and early fall for species including sandpipers, dunlin, dowitchers, yellowlegs, semipalmated plovers, American avocets, and many more.

After a day in the marshes, check out Chesapeake & Maine in Rehoboth Beach, a locally favorite seafood restaurant, enamored due to low prices and high quality. Their seafood is exclusively from the Chesapeake and Maine region and features coastal favorite dishes, handcrafted cocktails and Dogfish beers in a casual, nautical-themed atmosphere.

Even though there is no sales tax Delaware imposes a gross receipts tax on the seller of goods or provider of services. While the seller is not formally allowed to pass the gross receipt tax on to the buyer (so as to make it in effect a ‘sales tax’), it probably does impact the cost of goods you purchase. Still the same, you should be good with most routine travel expenses like food, lodging, recreation and such.   

How About Big Sky Country?

Despite the fact that parts of Montana’s Big Sky country are remote and population centers are few and far between, the state has no general sales tax. With that said just be aware that some towns with high tourism rates have been granted authority to levy a ‘local resort tax’ on retail sales, food and lodging. 

In terms of things to do, what could be more spectacular than Glacier National Park?  The answer is nothing!  This is ‘Big Sky’ country at it’s best.  The Montana you have heard about, the Montana you must visit at least once in your lifetime. Logan Pass, Reynolds Mountain and Clements Mountain tower over fields of wildflowers that carpet the ground throughout the summer. Early morning light on the mountains provides excellent chances to see wildlife, but remember you are in bear country, Grizzly Bear country. Hiking the Hidden Lake trail and the Highline trail, is the perfect way to build an appetite for a late supper back at your camp or hotel.

Back in Kalispell you will want to visit the family-owned Split Rock Café a local fixture in the historic KM building built in 1894. This place is known for its’ friendly atmosphere and excellent menu!  There are some really nice hotel facilities, resorts and even great golf courses in Kalispell as well as one of those airports frequented by the 'rich and famous' in their private jets.

In Montana, just because it looks like a sales tax, gets charged on things like a sales tax, affects the taste of your food like a sales tax, and impacts the comfort of a night’s lodging like a sales tax, doesn’t mean that’s it a sales tax.

Did Someone Say 'New Hampshire'?

Traveling in New Hampshire, their state motto of ‘live free or die’ may seem all too true since they don’t have any sales tax. 

Speaking of lofty heights, the mountains of Montana are not the only majestic peaks. The White Mountains are a mountain range covering about a quarter of the state of New Hampshire and a small portion of western Maine. The range is most famous for 6,288-foot Mount Washington, which is the highest peak in the Northeastern U.S. and for 76 years held the world’s record for surface wind gusts at 231 miles per hour occurring in 1934. It’s easy to get ‘blown away’ (figuratively) when you see views like this.

Believe it or not, the Omni hotel chain has a luxury resort at Mount Washington. It's grand in style, and is a classic resort with a grand history as well. The Omni Mount Washington Resort features Spanish Renaissance architecture, luxurious accommodations and enough recreation indoors and out to satisfy the most adventurous soul. So if you are not planing to 'over winter' at the Summit Observatory, then you may just want to indulge yourself at the Omni.

Be aware though, even with no sales tax, traveling in New Hampshire will impact your wallet because they do impose a ‘Meals and Rooms Rental Tax’ of 9% that applies to patrons of hotels (or any facility with sleeping accommodations), restaurants, rooms and meals costing more than 36-cents. When is the last time you purchased anything that cost less than 36-cents?  What this means is that you will be paying this ‘9% non-sales-tax sales tax’ on most of your summer-travel related expenses in New Hampshire.

Only in Oregon!

While there is no statewide sales tax in Oregon, local municipalities may impose sales taxes if they choose to do so. Ashland, for example, has a 5% sales tax on prepared food.

In Oregon we are back at another National Park, this time at Crater Lake National Park which inspires awe. Our Native Americans witnessed the crater formation 7,700 years ago, when a violent eruption triggered the collapse of a tall peak. It's also the deepest and bluest lake in the United States. If you are planning to visit between July and October that's the perfect time to enjoy a challenging hike or bike ride along sections of the Rim Drive, but plan ahead, things get pretty busy during that time frame.

You might as well visit Crater Lake’s premier fine dining establishment at the Crater Lake Lodge featuring Northwest cuisine made with choice Oregon-grown ingredients. While there are a few other 'simplier' (and yes less expensive) places to eat, if you are a 'foody' then this is where you will want to sample the best of what Oregon has to offer, from the freshest, locally-grown mushrooms and berries to Rogue Valley cheeses and wines.

But forewarned though, Oregon allows businesses to pass certain excise taxes on to consumers. These include local lodging tax (plus a 1.8% state lodging tax), taxes on tobacco products, and a “privilege tax” on beer, wine and spirits. Some privilege, right?  

Anyone for Alaska?

You have another state-sales-tax-free alternative if you wish to venture beyond the continental United States.  Alaska doesn’t impose sales and use tax, although some jurisdictions have local sales taxes, which can be as high at 7.5%.

Alaska is a huge state, and is also far away.  By far cruises offer a tremendous way to see the sights, make the trip, and experience a good time along the way.  With a well planned cruise you will see many of the same sights as other northern tours including icebergs, whales and the snow-capped peaks but the cruise may actually offer slightly warmer temperatures.

Popular ports of call include Skagway, Ketchikan, and Juneau. You definitely want to tour Glacier Bay National Park to see Margerie Glacier. Cruises also offer the biggest 'escape' from even local sales and 'misc.' taxes that you might otherwise encounter in Alaska. 

Besides the local jurisdiction sales taxes there are a variety of other ‘misc. taxes’ on things like beds (lodging), alcohol, car rentals, raw fish and tobacco. In other words, “a sales tax by any other name would still be a ‘sales tax’, right?”

The reality is that there really is nowhere you can go this summer without paying something that looks like a sales tax, sounds like a sales tax, and smells like a sales tax, even if the various taxing authorities try to fool you into thinking they don’t have any sales tax.  Heck, you might as well stay home, pay your own state and local sales taxes, and not be out the cost of traveling for the summer.

On the other hand, enjoy summer and just pay that 'whatever tax' wherever you go.  It will probably be well worth it just to 'get away from home.'

Thanks to Avalara, the sales tax people, for helping me with the 'states with no sales tax' information.  Remember, sales tax is one of the primary revenue generating mechanisms that state and local governments use to support their governmental services.  Sales tax can change from moment to moment, jurisdiction to jurisdiction, and item to item.  If you do business then you need a sales tax partner than can help you be compliant with the most current regulations and requirements. 

Avalara provides solutions for sales tax automation, including tax calculation, exemption certificate management, returns processing and 1099 filing and reporting. Automation via Avalara allows businesses to be fully sales tax compliant without sacrificing productivity so you won't spend time digging yourself out from under sales tax burdens or audits.