What is USE tax and why do we have to pay it?
There is a common misconception in business that when you purchase something and the vendor/supplier does not charge you sales tax for whatever reason, the business is not responsible to pay the sales tax. They treat it like a discount, a bonus, yippee – I screwed the MAN. Well, sorry folks, businesses ARE responsible to pay sales tax (retail and manufacturing exemptions noted). If sales tax was not previously paid, and the purchased was being used in a taxable manner USE tax is due. Here are a few common examples of USE tax: