DHS buys direct from the manufacturer (I assume) so if there is a per bullet tax in the state that the manufacturer is in then they would be bound by the state tax. They can not just go to a different state and buy 2 billion bullets. Like I said, I am just speculating.

Well that's when the free market takes over and said manufacturer either moves or another pops up in a non taxable state. I thought that was exactly how the free market is supposed to work and why you're always lobbying for lower taxes; to poach business from China. This is just smaller scale, Texas poaching from, oh let's say Michigan. If Michigan doesn't like it, too bad. That's how the free market works.
Or did you forget that the free market is supposed to get us out of everything?

FYI, 2 billion bullets in that short of a time frame is out of the ordinary, that is why it has been brought up. This isn't bullets bought to be used by the CIA, FBI, NSA, ICE, Army, Navy, Air Force, Marines and DHS combined, this is just DHS. One department that has never bought that many bullets before suddenly buys 2 billion. Why?

Maybe you finally have a government agency saving money buying bullets in bulk? Bullets do keep for awhile, it's not like we're talking about Bananas here.