As I understand it selling USED goods would not require paying the tax. No doubt some would try to sell new without paying but at least you would be able to go to the flea market as often as you liked to sell used stuff without being taxed. I hate the crazy sales tax on used cars in this state, if you want to sell your old vehicle to your neighbor he has to pay the same sales tax rate as on a new vehicle and since there is a cap on the tax on a new vehicle someone buying a beat up used car may end up paying the same amount in sales tax as a rich person buying a new Ferrari.
True, but folks will try to buy wholesale (no tax) and sell as used (no tax). How will someone track that? And it will need to be tracked.
There, will, unfortunately, still be a role for the IRS.