Sales tax savings

**shp1055** · 03-08-2011, 12:22 PM

Are there any here who shop in 2 different states/counties etc where the sales tax differs? I live right on the state line of LA and MS.

In Louisiana where I live, the sales tax on food is 4.75%, but on non food items, it's 8.75%.

In Mississippi (where I work - 3 miles from home) the sales tax is 7% on food and non-food.

So, theoretically, if you spent $50 per week for a year on food items in LA, the total sales tax would be $123.50; if you spent the same amount in Mississippi, it would be $182.00. A difference of $58.50.

If you spent $20 per week for a year on non-food items in LA, the total sales tax would be $91.00; the same amount spent in Mississippi would be $72.80. A difference of $18.20.

By just watching where you are buying your food/non-food items at the WM/grocery store in LA or MS, you could potentially save a total of $76.70 which is more than a weeks worth of grocerys & non-food using the above weekly amounts.

Granted, we are in a fairly concentrated area, so a tremendous amount of gas does not enter the picture for most of us.

Is anyone else able to do this?

**The Muse** · 03-08-2011, 01:09 PM

I live in Denmark where VAT is 25%. If I travel over the border to Germany, it's 19%.

It's very common for people here to carpool over the border for "big shopping". This goes for electronics, but also big food and beverage shopping trips. Soft drinks and beer in particular are much less expensive in Germany than here in Denmark.

**Neeley** · 03-08-2011, 01:33 PM

We do. The city we live in the sales tax is 10% and we pay that on absolutely everything from clothing, household items to food.

While there are over thirty grocery stores within ten square miles of my house, I travel twenty miles to shop at a different grocery chain in the next city over. Their tax is 8.5%. Only a 1.5% savings, but when I factor everything in, it is worth it to me. I spend $600 per month on groceries. At 10% my taxes are $60 whereas at 8.5% my taxes are $51. Only a $9 per month savings, but still a savings. The commute is actually easier since I can hit the interstate and can be there in no time with little to no traffic. If I go to the stores in my city, the traffic is so heavy it takes the same amount of time to get to them as it does to travel to the next city over. Also, I am have been boycotting my city for quite some time over the higher taxes and other issues important to me. I avoid buying anything I can here.

The grocer in the other city also has much lower prices on the groceries.

Gas usages is a wash since the longer commute is all interstate versus the shorter one being city stop and go traffic, neither one really uses more gas than the other.

**Contrary Housewife** · 03-08-2011, 01:43 PM

We never buy gas across the line in KS because of the taxes there. Right now it is 30c a gallon more expensive than in MO.

**lotsadebt** · 03-08-2011, 02:23 PM

Every year we travel to the beach for a vacation in Maryland near the Delaware border. There are huge outlet malls in Rehoboth Beach, Del. I shop as much as I can there to get my kids back to school items since there is no sales tax there. We live in Ohio were there is tax on clothes.

**shp1055** · 03-08-2011, 02:27 PM

Thanks, I was wondering if I was the only one doing this.

**Telephus44** · 03-08-2011, 04:04 PM

We are lucky in the MA doesn't tax food or clothing. However, for big purchases (say, new fridge or washer) we go to NH where there is no sales tax. It's an hour and a half drive though, so it has to really be worth it. Our sales tax is 6.25%, so even on a $500 item that's only $31.25 - and given how much gas is, the savings for us can be eaten up really quickly.

There are a lot of people from RI and CT who come to MA to shop for clothes, though. Especially back to school season!

**fernykins** · 03-08-2011, 04:19 PM

We have no sells taxs on Food in Ca and on everything else its 8.75%. They did try once to have a snack taxs it didn't work.
Fern

**savvy_sniper** · 03-08-2011, 04:58 PM

I used to work in a different county than the one I lived in. The sales tax was 2% lower (non food items). You bet I bought a lot of nonfood stuff on my lunch hour or after work before I went home. I have been frugal ALL my life. Saving money is saving money and it all adds up!

**frugalfranny** · 03-08-2011, 05:17 PM

I am 'able' to do it but Washington doesn't tax food. I have stopped at WM in Idaho when over there, and gotten my non-food items. Not worth it to make a special trip for just over 2% savings unless buying a lot.

However, TONS of people shop here for food (from the license plates in the parking lots) that are from Idaho as they tax food and everything at 6% (think it is)

On multiple occasions I have run into people from Montana that are at HD and Lowe's buying large appliances due to the sales tax issue. One said that is was cheaper for them to rent a truck and come over and the prices were lower. Whew....long trip...hope they made a good savings.

The south western border of Washington is where is it crazy........they go into Oregon where there is NO sales tax. Drives the state CRAZY and they have threatened to crack down on it............YEAH, RIGHT!!!!

**shp1055** · 03-08-2011, 05:48 PM

Franny - does it drive Washington crazy because they aren't getting the sales tax revenue or Oregon having to deal with all of the "out-of-staters"?

**frugalfranny** · 03-08-2011, 06:04 PM

Originally Posted by shp1055

Franny - does it drive Washington crazy because they aren't getting the sales tax revenue or Oregon having to deal with all of the "out-of-staters"?

The 'locals' in Oregon probably hate the added traffic...but TRUST ME.....the gov't yokels love the money---plus the stores.

It drives WASHINGTON gov't crazy cause they aren't getting the revenue!

A while back something was published about it......seems that it is figured into the BILLIONS (don't know where they came up with this number).......that they lose each year between the people going to other states and on-line buying..........INCLUDING but not limited to........people going over the border for gas (ALWAYS 10 to 20 cents cheaper).........to the reservations for cigarette buying........or buying online( GOBS of $ there).....and other buying.

We don't have to pay (but are supposed to do it later) sales tax for on-line items UNLESS that store has a store in Washington. (IE: we pay sales tax for things bought on-line at Sears but NOT for things bought on-line at LL Bean)

I say...........that is what they get for putting us in the TOP TEN for taxes on NUMEROUS things!! (gas tax, liquor tax---think we are also right up there for sales tax)

**shoiji** · 03-08-2011, 06:07 PM

There was a five and dime type store in the city that had lower taxes. Had something to do with being in the city and getting people to shop there. I really liked going into this place since you never knew what kind of great deals you would find. They ended up going out of business. The business was successful and had been in business for decades.

**heartofmine** · 03-08-2011, 06:55 PM

If I were close enough to the KY border I would go there since there are no sale tax on food. With gas so high though the savings would be nill. If I'm visiting my parents I do buy some food items while there.

**laura-n-sasha** · 03-08-2011, 07:40 PM

While we are in Nevada, we are stocking up on food stuff as there is no sales tax on food, however, there is tax on non-food things and it is at 8.10%. This includes wine and beer. In Utah, there is sales tax on food at 3%, some things at 6.85% and some things at 6.25%. It is a little confusing when I first started shopping in Utah, as I could not figure out what was what in regards to the tax.

So we plan to get a majority of the dried food here in Nevada, and other stuff as well, and then just supplement it in Utah.