Sales and Use Tax
Sales and Use Tax is a tax imposed by state and local governments on the sale of goods and services. When you buy something, the seller typically adds this tax to the purchase price, and they collect it to remit to the government. Use Tax applies when you purchase items without paying sales tax, like online or out-of-state purchases. Essentially, it's a way for governments to ensure they receive tax revenue on sales regardless of where the goods are bought. Both taxes help fund public services like education, transportation, and infrastructure.
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Sales tax is a tax added to the price of goods and services when you purchase them, typically charged at the point of sale. The seller collects this tax and sends it to the government. Use tax applies when you buy items from out-of-state sellers and don’t pay sales tax; it’s meant to ensure those purchases are taxed just like local ones. Both taxes fund public services, like education and infrastructure, and help maintain fairness in the marketplace by ensuring that all consumers contribute to funding public services in their jurisdiction.