Crazy Sales Tax Facts and Laws

Tax law can get be confusing at times, especially for businesses that operate in various states. Add to that the list of weird tax laws some states have and things can get crazy for businesses.

Avalara, provider of sales tax automation solutions, recently released a list of some of the most bizarre state sales tax laws and facts. Below are some of the laws and facts:

  • According to Arkansas law, cars sold to blind veterans are exempt from sales and use tax (source: Arkansas legal code).
  • In Alabama, prescription drugs are tax-exempt for humans, but not for animals (source:
  • While cups are exempt from sales tax in Colorado, straws and lids are not (source: Colorado government).
  • In California military personnel can purchase alcohol without paying sales tax (source: California legal code (section 32177.5)).
  • Indiana exempts marshmallow crème from sales tax, but not marshmallows (
  • The state of California posts the top 500 sales tax delinquents on their website (source:
  • In 21 states, illegal drug dealers are required to pay sales tax on their illegal drugs (source:

For the complete list of crazy state sales tax laws and more sales tax news, visit Avalara’s blog.