[palmer]

Only a small amount of imagination needed: imagine I pull up behind a truck at the side of the road in a rural area. The truck contains merchandise that was bought wholesale maybe right even on the dock in L.A. What will stop me from buying and not paying the sales tax?

Now imagine that there are controls to prevent this. I can't imagine any such controls but maybe your imagination is better than mine. Now imagine I want to buy a whole lot of ammunition. I am willing to pay sales tax. How will I be able to purchase that ammo anonymously?

[Route66]

"Only a small amount of imagination needed: imagine I pull up behind a truck at the side of the road in a rural area. The truck contains merchandise that was bought wholesale maybe right even on the dock in L.A. What will stop me from buying and not paying the sales tax?"

Unless the goods are smuggled in or you are dealing with someone selling stolen goods, you will have to purchase from a legitimate company. All our suppliers require our tax ID numbers before selling us goods for resale. You sign a form declaring they are for resale and that you will collect required taxes when you sell them.

I you never send in any taxes and you buy goods wholesale, they will come looking for you.