What is Use Tax?
Use Tax – Use Tax – Use tax is a tax assessed against the purchaser of tangible personal property for the use of the property in California when California sales tax has not been charged. Use tax rate is determined by the final destination where the good is consumed or utilized. UCSF is responsible for accruing use tax on purchases of tangible personal property from vendors when sales tax has not been charged on the invoices. UCSF is also responsible for accruing use tax for self-consumption of the purchases of tangible personal property originally purchased for resale with Resale Certificate. The use tax accrued is paid directly to the State Board of Equalization (BOE) rather than to the vendor. Use tax generally applies to out-of-state vendors who are not registered with the California State Board of Equalization. Use tax is accumulated in the use tax natural class account (NCA) and paid to Board of Equalization (BOE) quarterly. http://www.boe.ca.gov/ .
This tax is for supplies, materials and/or equipment purchased at wholesale, out of state, or out of Tuscaloosa County for storage, use, or consumption when the 9 percent sales tax was not paid at the time of purchase. In some cases, State sales tax was paid but not local (city and county) sales tax.
Use tax is a complementary tax to the sales tax. It’s imposed on the consumption, use, or storage of goods in Idaho, if sales tax wasn’t paid on the purchase of the goods. Most Idaho sales tax exemptions also apply to use tax. The use tax rate and sales tax rates are the same. Use tax is paid directly to the state, instead of to the seller of the goods. Individuals can report use tax on their annual Idaho income tax return or submit it directly to the Tax Commission. Businesses must have a use tax permit if they buy items without paying sales tax. There’s more information about Use Tax on our Web & Catalog Shoppers page and in our Use Tax Brochure. Ref: Idaho Code Section 63-3621 Contact us if you need more information.
Use tax is complementary to sales tax. When items are purchased locally, sales tax is often charged with each transaction. Purchases of similar items from out of town or out of state concerns generally do not include taxes and the use tax would be due on the purchase price. Other examples of transactions which require the purchaser to report use taxes are those where purchases are made through catalogs or over the Internet.
Use tax, at the same rates as sales tax, becomes due when the user and consumer of taxable merchandise does not pay tax to the supplier. Examples include purchases of tangible personal property for use from an out-of-state vendor who does not collect the tax, extraction from inventory purchased on a resale certificate for personal use and consumption. Generally, contractors become liable for a use tax on materials used in realty construction even when the contractee first purchases the materials on an exemption certificate. Use tax is due even on purchases made by citizens from another state which are not taxed by the seller.
