Use Tax

Use Tax is a tax imposed on the purchase of goods that are used, stored, or otherwise consumed in a state where the buyer did not pay sales tax at the time of purchase.

It is designed to ensure that local businesses are not disadvantaged compared to out-of-state vendors who may not charge sales tax. For example, if a resident of State A buys a product online from a retailer in State B and does not pay sales tax, they are generally required to report and pay a use tax to State A when they file their tax return.