Usually only resellers don't have to pay sales tax, if a business actually uses the equipment, they have to pay tax. I don't know what fantasy land you're living in (apparently one where you can read my mind about what I think about Iraq) but in a lot of states filing a fraudulent tax return is a felony. State AGs like to make examples of one big offender and send him off to jail to get others to comply. But it's true, laws vary a lot from state to state, even by county and city, so I think telling somebody that they can save hundreds by not paying taxes is the dangerous "legal advice". I'm the one saying you need to get actual legal advice if you think you don't have to pay taxes. In my state, when you file tax returns it's actually on the form (even though people ignore it). Some make you file a special form. And most states make the sales and use tax the same. But I'm just talking generically, most of the time. Yes, by all means, find out what the actual laws are in your locality. And yes, I was being too absolutist in my initial post, there are (I think 4 or 5) states with no sales/use tax.