Sales and use tax is not logical and it can’t be ignored. It’s tough to understand, hard to follow, and frustrating at the least.

According to a recent Fred Pryor seminar, when you charge sales tax, you aren’t taxing the property or service itself, but the retailing of it. Use taxes are complimentary or supplemental to sales tax and are designed to help the state get all the taxes due for the storage, use or consumption of goods or services in a state. They are used to help prevent tax evasion by those who make out-of-state purchases, level the playing field between in-state and out of state sellers, and  to deal with transfers or sales  of property or used equipment between division or subsidiaries. Use taxes are usually remitted by the buyer. [Read more…]