Use Tax

Business, Legal & Accounting Glossary

Definition: Use Tax


Use Tax

Quick Summary of Use Tax


A tax imposed by a state to compensate for the sales tax lost when an item is purchased outside of the state, but is used within the state. For example, you buy your car in a state that has no sales tax, but you live across the border in a state that does have a sales tax. When you bring your car home and register it in your state, the state taxing authority will bill you for the sales tax it would have collected had you bought the car within the state.




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March 29, 2024 https://payrollheaven.com/define/use-tax/.
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Use Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/use-tax/ (accessed: March 29, 2024).
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Use Tax. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/use-tax/

Definition Sources


Definitions for Use Tax are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd April, 2020 | 0 Views.