Slide 5 of 27
Notes:
When the Sales Tax was adopted, it quickly became apparent that leakage was occurring at the borders. To combat this, all states that levied a sales tax adopted a companion tax, called the use tax, to address the problem of interstate sales.
It is significant that, legally, the Use Tax is a tax on the privilege of using, storing, and consuming tangible personal property. Therefore, unlike the Sales Tax, the primary liability for remitting the Use Tax on remote sales, with a few exceptions, falls on the consumer.