[OrangeDaisy]

I have no clue. I have never heard of a tax like that here in Tenn.
Technically you do owe use tax if you live in TN and buy something in a state with a lower tax rate. Use tax is the difference in the rate you paid and TN's tax rate. If you buy something online and pay no sales tax, it's the same deal. But this is virtually unenforceable on the individual. Thousands of people cross the state line into KY because they have no sales tax on food. Businesses are subject to a sales tax audit, so they have to be careful about paying use taxes, but TN doesn't currently have the resources to audit individuals. If you buy something big outside TN (furniture, car, etc.) and have it shipped to TN, the shipping company will make sure you've paid the use tax before they will ship it.

[Coldwater Creek]

We did but a car in Oklahoma and then paid sales tax in Tenn. I thought that it was because we had to register the car here that we had to pay sales tax. Oh well you learn something new every day. But I do remember something about people going into Virgina and buying cigarette's and then reselling them in Tenn., and getting into trouble. Anyone that reports normal purchases out of state is crazy.

[Fledermaus]

Very good explanation of the Use tax. Most states have them and most people are clueless.

Unless it's product for resale, in Tenn you, as a business, better pay that use tax!