What is a use tax?
If you buy items that are subject to Sales Tax for which the seller does not charge and collect the tax on the invoice (or receipt), you are personally responsible for remitting the tax directly to the PA Department of Revenue. This tax is called USE TAX. Purchases made over the Internet, through toll- free numbers (800, 888, and 877), from mail order catalogs, or from an out-of-state location are examples of purchases that would be subject to USE TAX. The tax rate is the same as the Sales Tax, 6 percent state, and 1 percent local tax, if the purchaser is located in Philadelphia or Allegheny County.
A use tax is similar to a sales tax in its application. Use tax is imposed on the “storage, use or other consumption” of all tangible personal property and the receipt of certain services that are subject to sales tax. Purchases that are properly exempt from sales tax are also exempt from the use tax. Use tax must be paid on all purchases made by Ohio residents and businesses if the proper amount of sales tax has not been paid to the vendor, seller, or service provider. The use tax rate is equal to the sales tax rate in effect in the county where the property is used or benefit of the service is received by the purchaser. The most common situation that gives rise to a use tax liability is when an Ohio customer makes a mail order purchase from an out-of-state seller. Use tax is also due when the purchaser improperly claims exemption from the sales tax or if the sales tax paid is less than the total use tax in effect in the county where the item is used or benefit of the service is recei
A use tax is similar to a sales tax in its application. Use tax is imposed on the ‘storage, use or other consumption’ of all tangible personal property and the receipt of certain services that are subject to sales tax. Purchases that are properly exempt from sales tax are also exempt from the use tax. Use tax must be paid on all purchases made by Ohio residents and businesses if the proper amount of sales tax has not been paid to the vendor, seller, or service provider. The use tax rate is equal to the sales tax rate in effect in the county where the property is used or the purchaser receives benefit of the service. The most common situation that gives rise to a use tax liability is when an Ohio customer makes a mail order purchase from an out-of-state seller. Use tax is also due when the purchaser improperly claims exemption from the sales tax or if the sales tax paid is less than the total use tax in effect in the county where the item is used or benefit of the service is received. O
