Legal Definition of use tax
: a tax imposed on the use of personal property and especially property purchased in another state specifically : a one-time tax imposed on the exercise or enjoyment of any right or power over tangible personal property that is incident to the ownership, possession, custody, or leasing of it a law allowing the payment of a sales tax to be credited against the amount of use tax due the manufacturer became liable for a use tax when items were withdrawn from inventory for internal use
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