BizSugar.com › Finance › Use Taxes: What They Are, Where They Apply, When They Are Due

The Use Tax Defined: Learn more about what they are, where they apply and when they are due. Use taxes apply to a wide range of goods–any tangible personal property used, consumed or stored in the state–and services on which no sales tax was paid. Even if a sales tax was paid to an out-of-state vendor, if the sales tax rate in that state is lower than the rate in the buyer’s state, the difference may be applied as a use tax.