Cave dwellers used animal skins. The Ancient Greeks used
matted animal hair. Today’s socks are made from more
sensible materials like cotton, wool, and nylon. Most
states exempt manufacturers from paying sales tax on
raw materials and packaging materials.
Taxed in three states and
the District of Columbia
Partially taxed or taxed at
a reduced rate in five states
Exempt in 37 states.
HAWAII IS NO PARADISE FOR MANUFACTURERS
Hawaii’s general excise tax (its version of sales tax) ranks
#1 for broad application — covering virtually all products
and services, including manufacturing equipment and raw
materials. Materials purchased by manufacturers for use
in sellable products are taxed at the wholesale rate of 0.5%.
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