Use Tax Act

The Use Tax Act is a law that requires consumers to pay tax on goods they purchase for personal use when sales tax hasn't been collected at the time of purchase, typically for items bought online or from out-of-state sellers. Essentially, if you buy something and didn’t pay sales tax, you are expected to report that purchase and pay the equivalent use tax to your state. This ensures that local businesses are not disadvantaged by sales made outside the jurisdiction, helping to maintain fair competition and funding for public services.