Use tax

use
A use tax is a type of tax levied in the United States by numerous state governments.wikipedia
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Sales tax

salessales taxesnational sales tax
It is essentially the same as a sales tax but is applied not where a product or service was sold but where a merchant bought a product or service and then converted it for its own use, without having paid tax when it was initially purchased. In most cases, this complexity is part of the underlying sales tax laws; but while a brick-and-mortar store has to deal with only the sales tax laws of its own location, remote sellers have to deal with the use tax laws of many jurisdictions—up to every US state and locality that assesses them, if the company has a presence or "nexus" in every state (as large "brick-and-mortar" sellers like Wal-Mart and Best Buy do).
When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax.

Massachusetts

MACommonwealth of MassachusettsMass.
For example, a resident of Massachusetts, with a 6.25% "sales and use tax" on certain goods and services, purchases non-exempt goods or services in New Hampshire for use, storage or other consumption in Massachusetts.
Massachusetts also charges a use tax when goods are bought from other states and the vendor does not remit Massachusetts sales tax; taxpayers report and pay this on their income tax forms or dedicated forms, though there are "safe harbor" amounts that can be paid without tallying up actual purchases (except for purchases over $1,000).

Streamlined Sales Tax Project

Certified Service Provider PlatformsStreamlined Sales and Use Tax AgreementStreamlined Sales Tax
Currently, there are 19 full member states and 3 associate member states that belong to the Streamlined Sales Tax Project (SSTP).
The Streamlined Sales Tax Project (SSTP), first organized in March 2000, is intended to simplify and modernize sales and use tax collection and administration in the United States.

Vermont

VTState of VermontGeography of Vermont
For example, where a Vermont resident has not paid at least 6% sales tax on property brought in for use in the state, Vermont law requires filing a tax return (Form SU-452 and payment) by the 20th day of the month following non-exempt purchases to avoid a $50 late fee, a 5% penalty per month, to a maximum of 25%, plus statutory interest on the unpaid tax and penalties.
A use tax is imposed on the buyer at the same rate as the sales tax.

Tax-free shopping

tax-free salesTax Free ShoppingVAT refunds
Tax-free shopping is a privilege enjoyed by all residents of United States jurisdictions without sales taxes, but through so-called "remote" sales—including sales to visiting out-of-state residents, sales via catalog, and sales via Internet—customers in a sales taxed jurisdiction may also make purchases in sales tax-free jurisdictions, notwithstanding the legal requirement to pay the equivalent (compensatory) use tax in their home state.

Quill Corp. v. North Dakota

Quill Corporation v. North Dakota
Quill Corp. v. North Dakota, 504 U.S. 298 (1992), was a United States Supreme Court ruling, since overturned, concerning use tax.

Tax holiday

tax abatementsales tax holidaytax incentive
As with other sales taxes, visiting residents of non-participating states who purchase tax-free goods (holiday or not) may still have to pay use tax on the goods they take home.

Tax

taxationtaxeslevy
A use tax is a type of tax levied in the United States by numerous state governments.

United States

AmericanU.S.USA
A use tax is a type of tax levied in the United States by numerous state governments.

New Hampshire

NHState of New HampshireNew Hampshire, U.S.
For example, a resident of Massachusetts, with a 6.25% "sales and use tax" on certain goods and services, purchases non-exempt goods or services in New Hampshire for use, storage or other consumption in Massachusetts.

Tax credit

tax creditsrefundable tax creditcredits
If the same goods are purchased in a US state that does collect sales tax for such goods at time of purchase, whatever taxes were paid by the purchaser to that state can be deducted (as a tax credit) from the 6.25% owed for subsequent use, storage or consumption in Massachusetts.

Tax return (United States)

tax returntax returnsincome tax returns
For example, where a Vermont resident has not paid at least 6% sales tax on property brought in for use in the state, Vermont law requires filing a tax return (Form SU-452 and payment) by the 20th day of the month following non-exempt purchases to avoid a $50 late fee, a 5% penalty per month, to a maximum of 25%, plus statutory interest on the unpaid tax and penalties.

Walmart

Wal-MartWalmart SupercenterWal-Mart Stores, Inc.
In most cases, this complexity is part of the underlying sales tax laws; but while a brick-and-mortar store has to deal with only the sales tax laws of its own location, remote sellers have to deal with the use tax laws of many jurisdictions—up to every US state and locality that assesses them, if the company has a presence or "nexus" in every state (as large "brick-and-mortar" sellers like Wal-Mart and Best Buy do).

Best Buy

BestBuyBest Buy CanadaBest Buy Co
In most cases, this complexity is part of the underlying sales tax laws; but while a brick-and-mortar store has to deal with only the sales tax laws of its own location, remote sellers have to deal with the use tax laws of many jurisdictions—up to every US state and locality that assesses them, if the company has a presence or "nexus" in every state (as large "brick-and-mortar" sellers like Wal-Mart and Best Buy do).

Sales taxes in the United States

sales taxstate sales taxsales taxes
Use tax is self-assessed by a buyer who has not paid sales tax on a taxable purchase.

State Board of Equalization (California)

State Board of EqualizationCalifornia Board of EqualizationCalifornia State Board of Equalization
The authorities of the Board fall into four broad areas: sales and use taxes, property taxes, special taxes, and acting as an appellate body for franchise and income tax appeals (which are collected by the Franchise Tax Board).

Marketplace Fairness Act

Marketplace Fairness Act of 2013Marketplace Fairness Act (S.1832;112th Congress)Senate Bill 1832
The Marketplace Fairness Act is proposed legislation pending in the United States Congress that would enable state governments to collect sales taxes and use taxes from remote retailers with no physical presence in their state.

Puerto Rico Sales and Use Tax

Sales and Use Taxsales taxthe Puerto Rican municipal sales and use tax
The Puerto Rico Sales and Use Tax (SUT, Impuesto a las Ventas y Uso, IVU) is the combined sales and use tax applied to most sales in Puerto Rico.

Sales and use taxes in California

sales taxCaliforniaCalifornia state taxes
The use tax is imposed on the storage, use, or other consumption in California of tangible personal property purchased from a retailer.

Value-added tax

VATvalue added taxGoods and Services Tax
Generally, state law requires that the purchaser report such purchases to the state taxing authority and pay the use tax, which compensates for the sales tax that is not paid by the retailer.

Miller Bros. Co. v. Maryland

Miller Brothers Co. v. Maryland
In Miller Brothers Co. v. Maryland, 347 U.S. 340 (1954), the Supreme Court ruled 5-4 that a mail order reseller was not required to collect a use tax unless it had sufficient contact with the state.

Minneapolis Star Tribune Co. v. Commissioner

Minneapolis Star & Tribune Co. v. Minnesota Comm'r of RevenueMinneapolis Star Tribune Company v. Commissioner
Minneapolis Star Tribune Company v. Commissioner, 460 U.S. 575 (1983), was an opinion of the Supreme Court of the United States overturning a use tax on paper and ink in excess of $100,000 consumed in any calendar year.