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use tax

Use tax is a tax imposed by state taxing authorities on the purchase of goods outside the taxpayer’s state of residence when sales tax is not collected on the transaction. Use taxes are generally designed to discourage the purchase of goods that are not subject to sales tax.

In Tennessee, use tax complements the state sales tax and is designed to ensure that the state collects tax revenue on goods purchased out of state or from sources where sales tax was not charged at the time of purchase, such as online or catalog sales. The use tax rate in Tennessee is the same as the sales tax rate, which is a combination of the state tax rate plus any local tax rate that may apply depending on the buyer's place of residence. Consumers are responsible for paying use tax directly to the Tennessee Department of Revenue when they purchase taxable goods without paying Tennessee sales tax and then use, store, or consume those goods in Tennessee. This is particularly relevant for online purchases. If the seller does not collect Tennessee sales tax at the time of the sale, the buyer is supposed to report and pay the use tax on their individual income tax return or through the Consumer Use Tax Return, depending on the situation.

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Taxes

use tax

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Taxes

use tax

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