[Iwo Jima]

A DVD manufacturer made it. Maybe they're in the United States,maybe from outside the US. Maybe the manufacturer is on an Indian reservation. Indian reservations would become like Swiss banks are or used to be -- a place where tax free transactions could occur and your income could be sheltered.<br

In any event, the purchase from the manufacturer is not taxed. The tax is supposed to occur when it is sold as a new good. But if it becomes "used" before it is sold, why can it not be sold tax free as a used good? Even if that's not the way it is supposed to work, that's the way it would work. And the established businesses would have to adapt in much the same way or suffer the consequences.

[kevkrom]

In any event, the purchase from the manufacturer is not taxed. The tax is supposed to occur when it is sold as a new good. But if it becomes "used" before it is sold, why can it not be sold tax free as a used good?

"Used" is a short-hand definition. What is actually the subject is whether or not the item has been taxed for retail sale in the past -- if yes, then it is not taxable on resale, if no, then it is.

In your example, the "used" DVD player would be subject to the tax, because it had never been previously taxed.

[CSM]

So a business that is liscensed to purchase goods for retail sale, therefore without the sales tax, would risk that liscense to sell the goods cheaply. Is that your premise?

Don't you think it would be easy to identify a retail liscensee that never submits any tax?

[Principled]

But if it becomes "used" before it is sold, why can it not be sold tax free as a used good?

It only becomes used after the tax is paid.