What Is Use Tax & Does It Apply To You?

Use tax is a nonrecurring tax that is complementary to sales tax and is imposed on the storage, use, or other consumption of tangible personal property or a taxable service inside the state boundaries.

Who Is Responsible For Use Tax?

The purchaser owes state and local use tax if they buy taxable goods and services that are stored, used or consumed inside state boundaries from a seller who does not charge sales tax for that particular personal property item or taxable service. If the seller does not have a permit or fails to charge sales and use tax, the purchaser must pay the use tax directly to our office unless an exemption applies.

What is The Use Tax Rate?

Each state has their own tax rate for use tax purchases.  Please consult your specific state to determine the rate.