Why doesn't Delaware charge sales tax?

Answer 1

Delaware does not have a sales tax because it wants to attract retail tenants to its shopping centers to lure consumers from surrounding states and grow the overall economy to improve its tax base. Consumers from other states travel to Delaware to make purchases, which results in a larger retail sector and overall economy for Delaware.
A sales tax is also a regressive tax which disproportionately taxes poor people, which is not good economic policy.
Delaware has more entities formed there than people. Those corporations, even if not located in Delaware, must pay a fee to Delaware every year and at the time of formation. When stock is lost in companies formed in Delaware, the value of that stock escheats to Delaware. In total, the incorporation industry in Delaware accounts for about 40% of the state's tax revenue. This allows it to fund its budget without a sales tax.
Delaware also has a very short stretch of interstate highways which charge very large tolls per mile. These tolls fund much of the state's highway budget and most of the money comes from drivers out of state, just passing through.

Delaware also has a "gross receipts tax" which is a "back-door sales tax" charged to the business of 1-2% of their total income.