Use tax is a government imposed consumption tax that is levied on goods and services within a specific jurisdiction. Fundamentally, it is the equivalent of sales tax with the difference being that the tax is levied where the taxable good or service is consumed. As an example, if a consumer (end user) located in California purchased a cell phone from a merchant (seller) located in Oregon; the consumer would be responsible for paying the use tax. This preset amount, usually calculated on a percentage basis, is based on the jurisdiction where the end user (retail consumer) lives. The consumer would then be responsible for remitting the use tax to the appropriate taxing authority, usually their state Department of Revenue. In order to collect use tax, a sales & use tax permit will be required.