Model Sales and Use Tax Regulation

Sales and Use Tax Regulation governs how sales tax is collected and remitted on goods and services. When a business sells taxable items, it must charge the appropriate sales tax and send it to the government. Use tax applies when you buy something from out-of-state without paying sales tax and then use or consume it locally. These regulations ensure the fair collection of taxes to fund public services, maintain a level playing field among businesses, and comply with state laws. Businesses must understand their obligations to accurately collect, report, and pay these taxes to avoid penalties.