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Which of these describes a use tax?

type of sales tax imposed on goods purchased from another state

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Andrue Koch

Lvl 4
5y ago
Updated: 9/27/2023

type of sales tax imposed on goods purchased from another state A+

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What describes a use tax?

A use tax is a type of tax imposed on the purchase of goods or services that are used, stored, or consumed in a jurisdiction where sales tax has not been paid. It is typically applied to items bought out of state or online where sales tax was not collected. The purpose of the use tax is to ensure that local businesses are not disadvantaged by out-of-state purchases and to generate revenue for the jurisdiction. Taxpayers are responsible for reporting and paying the use tax on their tax returns.


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