Sales tax is a compensatory tax levied on sellers of taxable goods and services. The seller is responsible for collecting the appropriate amount of tax (calculated as a preset percentage based on the jurisdiction the seller is located in) and remitting it to the appropriate tax authority, usually a Department of Revenue in their home state. Use tax is an excise tax levied on buyers of taxable goods and services. The buyer is responsible for remitting the appropriate amount of tax (based on a preset percentage based on the jurisdiction the buyer is located in) to the appropriate tax authority, usually a Department of Revenue in their home state.