[Bob Mc]

" Is any returned item now used? And can retailers sell returned merchandise sans sales tax?"

If the tax has been collected the first time when it was sold as new, then it is used. No more taxes to be collected. Sounds simple to me.

[lewislynn]

If the tax has been collected the first time when it was sold as new, then it is used. No more taxes to be collected. Sounds simple to me.

It may not sound so simple if you're a retailer. If the retailer returns 100% of the customer's purchase for something never used was the tax really paid? If it was, how does the retailer now legally sell it as new?