What is Use Tax?
Use tax is a tax imposed at the same rate (6%) as the sales tax on the buyer of property used in Vermont. Use tax applies if the sales tax is not paid at the time of purchase and the property would have been taxable in Vermont. Your business will owe use tax if: • You buy property out-of-state and have it delivered to you in Vermont and the vendor does not charge sales tax. • You bring into Vermont property you purchase from out-of-state. The tax is reduced by any tax paid to the other state. • You buy property in Vermont and the seller fails to collect the sales tax from you. • You take items out of your inventory which you purchased tax-exempt and use them in your business. • You use property which you normally produce for sale in your business. The tax is on the normal selling price for the property.
• Individuals must report the purchase of taxable, tangible personal property for use in Massachusetts from out of state businesses that do not collect Massachusetts sales and use tax. Examples of taxable items include computers, furniture, jewelry, cameras, appliances and any other item that is not exempt. • The Massachusetts use tax is 5 percent of the sales price or rental charge of tangible personal property on which no Massachusetts sales tax was paid, where the property was purchased to be used, stored or consumed in the Commonwealth.
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, extractions 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.
A. Use Tax is levied on retail purchases from out-of-state vendors, and is generally noted as “sales” tax on the vendor’s invoice. It was enacted with the specific intent to prevent unfair competition from out-of-state vendors. If the out-of-state vendor does not specifically charge the use (or “sales”) tax, then the Arizona purchaser is responsible for remitting the tax. The Arizona rate for Use Tax is 5.6% and the Town of Prescott Valley rate is 2.33%. Yavapai County does not have Use Tax. The region class for the State Use Tax, however, is still YAV. The business class for the State is “029” and the business class for Prescott Valley (PL) is “002.” The purchaser may either be licensed to remit the use tax on the retail purchase that were not taxed, or may remit the tax with a cover letter to the Arizona Department of Revenue. When a Sales Tax has been paid in the state of purchase at a rate equal to or greater than the Arizona and Prescott Valley use tax rates, the Arizona purchaser
