Use Tax Law

Use tax is a legal requirement that individuals and businesses pay tax on purchases made outside their home state and brought into the state where they reside or operate. It ensures that items bought without sales tax (like online purchases or goods from other states) are taxed fairly, just like local purchases. This tax helps prevent lost revenue for local governments and maintains tax equity among consumers. Typically, if sales tax wasn't paid at the time of purchase, the buyer is responsible for reporting and paying the use tax directly to their state.