I live in The Bahamas and when it's time for me purchase something iTunes asked for State. I checked and Bahamas set as address so why they still asking?!

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You have to physically be in a country to use its store, so even if you have residences two countries you can only use the store of the country that you are physically in.
e.g. US store's terms :
The iTunes Service is available to you only in the United States, its territories, and possessions. You agree not to use or attempt to use the iTunes Service from outside these locations. Apple may use technologies to verify your compliance.
All other countries terms will be similar. Violating the terms can cause Apple to permanently disable the account.

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