Q. What is the use tax?

A.  If a business purchases taxable goods or services for use in a trade or business (such as office furniture, computers, and supplies) and the seller does not charge Connecticut sales tax, it must report purchases subject to the use tax on Form OS-114, Connecticut Sales and Use Tax Return, for the period in which the purchases are made. Items that are purchased for resale and are subsequently taken out of inventory by the business and either used by the business or given away are subject to sales and use taxes.  If an item purchased in another state already was subject to that state’s sales tax, credit for the tax may generally be taken when computing the Connecticut use tax.  Common purchases that are subject to use tax would be supplies or equipment purchased by Internet or mail order sales since the vendor is rarely required to collect sales tax.

This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services.  It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).  However, it is not intended to serve as a legal ruling.