Which makes it a very interesting state, because it seems that not only does that discourage outsiders from coming into the state to spend money, but it also gives incentive for people IN the state to leave the state to buy things (although it could be that the sales tax in neighboring states are high enough that it cancels out the savings from the lower cost of goods).
Actually, it is the exact opposite. The mental concept of “no sales tax” seems to make people ignore comparison shopping. That is something I have NEVER ignored.
When we moved here from DE 10 years ago all of my friends insisted I would be back on a regular basis to do my shopping because I can hit the DE line in an hour and back “home” to Dover in 2 hours - I told them they were crazy. We had been coming here for 3 years and I already knew everything was less expensive here than there, even after adding the sales tax. There are a couple of specialty shops where I have always shopped, but other than that I spend as little as I can when I am there. For pete’s sake, for another buck I can buy a case of beer for what I paid for a 12 pack at home than I paid in Dover.