Sales Tax vs. Use Tax

							   Sales Tax vs. Use Tax
 The tax rate is the same for sales tax and use tax

       SALES TAX                              USE TAX
 Tax imposed on retailer        Tax imposed on consumer
 Seller reports and pays the    Consumer owes and pays the
  sales tax due on items         use tax due on items purchased
  sold at retail in California   without payment of sales tax
 Tax measured by the            Tax measured by purchase
  gross receipts from the        price
  sale
                                 Out-of-state retailers engaged
                                 in business in California must
                                 collect and pay use tax on items
                                 sold to Californians
                                   Analysis of the California Sales and Use Tax Law