There’s a general sales tax in 45 states, the District of Columbia, and the territory of Puerto Rico. Most of those states have local sales taxes in addition to the state sales tax. However, there are no local sales taxes in Connecticut, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, or Washington, D.C. That leaves five states with no sales tax: New Hampshire, Oregon, Montana, Alaska, and Delaware (sometimes called the NOMAD states after their initials). Alaska stands out because more than 100 local governments in Alaska levy a local sales tax. And although the NOMAD states don’t have a general, statewide sales tax, they do tax certain transactions. All told, there are more than 13,000 sales and use tax jurisdictions nationwide, many of them overlapping. Sales tax sourcing rules govern which jurisdiction’s rates apply. The vast number of sales and use tax jurisdictions in the United States is one reason sales tax compliance can be so challenging for businesses. Sales and use tax rates are also subject to change, and there can be different rates for different products. Adding to the complexity, some products and services are fully exempt from sales and use tax by law. And some normally taxable transactions are exempt because of the circumstances; in this case, businesses must validate the exemption with an exemption certificate.