Paying USE Tax

Posted on Tuesday August 24, 2010
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Are you required to pay USE Tax? If you work online (internet) and receive payment for products, you are required to pay USE Tax in most states. This is a surprising fact to most entrepreneurs. Due to the track record the IRS has on monitoring internet sales, it is common for people ignore their obligation to pay.

I know we are taxed to death! I totally agree that the USE Tax is ridiculous, but the question isn’t whether or not “I think it is required” rather “are we required” and we are required to pay. And…if you profess that you operate a honest and ethical business, you better not shuffle your responsibility aside.
Multistate Tax Compact
Article V. Elements of Sales and Use Tax Laws

Follow the link to Article V. and read more on Multistate Taxes.

Sales & Use Tax Consultants
SUTC can help

Multistate Tax Guide
(Click Here)




Michigan Taxes
Department of Treasury

"The use tax is not a new law; it was enacted in 1937. With the birth and rapid growth of Internet sales, revenue lost from non-reporting of the use tax is becoming substantial....Use tax is required by law when a person purchases a good from out of state and the retailer hasn't charged sales tax in their jurisdiction....The Internet Tax Freedom Act does not prohibit the sales and use tax on consumer purchases over the Internet by Michigan residents that are taxable under Michigan law. Only new taxes on Internet access are prohibited".

Resource: Michigan.gov
Posted in Startup Tips, Business Tools    Tagged with multistate use tax, use tax guide, paying use tax, internet tax freedom act, michigan residents, michigan law


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