This paper examines issues involved in identifying and securing sales tax exemptions to curtail the potential negative impact of state sales taxes on assistive technology. Chapter I discusses the nature of sales taxes, including their definition, their impact, their structure and administration, and the sources of exemptions. Chapter II considers the provisions states have made for eliminating sales tax on the purchase of assistive devices in certain disability groups, including vision, hearing, mobility, and communication. Chapter III evaluates other options for eliminating sales tax, such as federal preclusion, having rehabilitation engineering centers pass on their tax exemptions to disabled consumers of equipment, strengthening the secondary market, exempting custom software, exempting tax on assistive technology services, and using out-of-state sales. Chapter IV presents a state-by-state analysis of the status of assistive technology exemptions, along with recommended courses of action. The paper concludes with general legislative and administrative recommendations. Tables appended to the paper list state sales tax law citations, sales tax administration agencies, recently enacted exemptions illustrating local economic or social concerns, vehicle exemptions by state, and other items. A total of 103 reference notes are appended. (JDD)