If you are purchasing items from out of state you do not pay sales tax to that other state. If that company has an office in your state they will collect sales tax for your state, even if you purchased from a location across the border (assuming that your state has sales tax, are there any left that don't?). Most states, that have sales tax, have a law which says that you have to pay sales tax/use tax on items purchased out of state unless you already paid more than what your state collects for sales tax.

I'm not a lawyer and don't give legal advice, but here in illinois the only advantage to buying out of state (assuming that you report your out of state purchases) is that you might avoid paying city or county charges. For instance, the state of Illinois has a sales tax rate of 6.25% but if you buy in the city of Chicago (who would buy a tractor in the city of Chicago?) the rate is 8.75% due to city and county taxes. These taxes, last time I looked, are not collected on the state income tax return for out of state purchases.

DavidV

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