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 Florida, use tax complements the state's sales tax and is designed to ensure that tax is paid on goods purchased out of state when no sales tax has been charged. This typically applies to items bought online or through mail-order catalogs from businesses that do not have a physical presence in Florida. The current state sales tax rate is 6%, and the use tax is imposed at the same rate. Consumers are responsible for reporting and paying use tax on out-of-state purchases when they file their Florida tax returns if sales tax was not collected at the time of purchase. Businesses that make out-of-state purchases for use in Florida are also required to pay use tax, unless an exemption applies. The Florida Department of Revenue administers the collection of use tax and provides guidelines for compliance.
