Use Tax Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Use Tax, written in plain English, along with examples of how it is used.

What is Use Tax?

(n) Use tax is levied when the products are purchased from a different state paying the sales tax to that state. This tax compensate the state where the goods are finally put to use, the loss it has suffered because of the purchase from a different state.