“Use” taxes are levied on non-real property (ie, other than real estate or land) that is used in business.
For example, when we ran a farm, we had to pay use taxes to the county annually on all my farm equipment. The equipment was listed when I bought it and put it “into production,” and the county had a depreciation schedule where the value of the equipment on the use tax rolls went down every year.
There were also sales taxes on ag equipment, but the state wouldn’t collect sales tax on equipment that was purchased out of state and delivered to our farm on a common carrier (ie, trucking line with an ICC #). But regardless of where we purchased property used in the farming operation, we had to pay use taxes.
Having the Feds collect “use” taxes will fund local counties about as well as PILT payment do.
NVDave: ““Use” taxes are levied on non-real property (ie, other than real estate or land) that is used in business.”
Sorry, but that’s not right. Use taxes don’t only apply to businesses. The rules likely vary from state to state, but in my state, use taxes apply to any product purchased out of state that is used in state. It just so happens that the use tax rate (in my state) is the same as the sales tax rate.
In some states, businesses and individuals are both legally required to track all interstate purchases and remit use taxes to the state government. Some states wisely allow consumers to pay a flat rate based on income when they file their annual taxes. It doesn’t matter if I buy something for noncommercial use. I still have to pay use taxes on it.