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Sales and Use Tax - What's the Difference?

Sales Tax and Use Tax – What’s the Difference?

July 27, 2010
Most people are familiar with the term “sales tax”, because we’re required to pay it almost every time we make a purchase at a local store. (Unless you’re lucky enough to live in a state with no sales tax.) A sales tax is typically a required percentage of the sale price of a good or service, that is paid by the purchaser at the time of the sale, and collected and remitted by the retailer. Sales taxes only apply to retail transactions – not wholesale ones – because they are a type of “consumption” tax. A “use tax” is not… Read More