You and me. I owned arcades and “sold” pay phones way back when.
We had a "house" account where anybody who walked in could purchase and pay state taxes since they did not have a tax except certificate from the state ...
When I started running the business, the account was barely used, by the time I left it was my # 1 account...
The math is real simple for a guy trying to make a living...
You pay 7 % tax up front on a $500 purchase or pay the state 7% after you vend it for $1,000 though the machines...
Pretty much a no brainer ...until you get caught...
The state being the state your chances of being audited were pretty slim...