Multi-State – Use Tax Reminders Issued

SALT Report 1930 – The following states have issued use tax reminders for those making online, catalog, or out-of-state purchases this holiday season.

Indiana 

The Indiana Department of Revenue reminds taxpayers of their use tax obligations when making online purchases. Individual taxpayers are required to report use tax on their individual tax returns if the online retailer does not collect sales tax on a purchase. The use tax rate is 7%.

Indiana Department of Revenue – News Release

Louisiana

Use tax applies to online purchases, mail order purchases, or television shopping network purchases, if the retailer does not have a physical location in Louisiana and does not charge sales tax. The purchaser is required to report and pay the 8% use tax directly to the Department. Taxpayers should report the tax on their Louisiana individual income tax return or they can use the Consumer Use Tax Return.

Purchases that are subject to the tax include appliances, books, clothing, computers, CDs, DVDs, electronics, furniture, music and movie downloads, software, and tobacco products.

Louisiana Department of Revenue – Press Release

Florida

Use tax applies to items purchased outside Florida, including another country, that are brought or delivered into the state and would have been taxed if they had been purchased in Florida. The 6% use tax rate applies to purchases made through the Internet, mail-order catalog purchases, purchases made in another country, furniture purchased from dealers located in another state, and computer equipment ordered from out-of-state vendors advertising in magazines.

It is the purchaser’s responsibility to submit their use tax payment directly to the Department. Taxpayers can file and pay online or complete an Out-of-State Purchase Return Form DR-15MO. However, if the tax owed is less than one dollar, the purchaser does not have to file a return.   Any items purchased and used in another state or territory of the United States for six months or longer before being brought into Florida are not subject to use tax.

Registered Florida dealers should not use the DR-15MO to remit use tax; instead they should remit any use tax due on their sales and use tax returns. Also, anyone who purchases an aircraft or boat outside Florida and then bring it into the state should not use Form DR-15MO to remit use tax. Taxpayers should use the Ownership Declaration and Sales and Use Tax Report on Aircraft Form DR-42A and the Ownership Declaration and Sales and Use Tax Report of Vessel Purchase Form DR-42B to remit use tax on these purchases.

Florida Department of Revenue – Consumer Use Tax Information

Ohio

Purchases made online or from a catalog where the seller does not charge sales tax are subject to use tax. The use tax should be reported and paid on your state annual income tax returns. The Department has an online calculator to help taxpayers determine the amount of use tax due, as the rate varies based on the purchaser’s county of residence.

Ohio Department of Taxation – News Release

Michigan

Purchases from mail-order vendors, television shopping networks, and online retailers where no sales tax is charged are subject to use tax. Taxpayers should report use tax on their annual income tax returns. The use tax rate is 6%.

Michigan Department of Treasury – News Release