Use Tax

Use tax is a type of sales tax that applies to goods and services purchased from outside your state, where no sales tax was paid at the time of purchase. It ensures that in-state businesses are not disadvantaged by out-of-state purchases. For example, if you buy a product online from a seller that doesn't collect sales tax, you are responsible for reporting and paying use tax to your state. This tax helps fund public services and infrastructure, similar to sales tax collected on local purchases.