What is it? Sales and use tax is a form of tax that is imposed by both state and local governments on the sale or use of goods and services. Sales tax is assessed by the state or local government to the seller and is a certain percentage of the sale. This percentage varies by state and locality. The sales tax is usually passed on to the buyer, resulting in the buyer paying the tax. When the states first enacted their sales taxes, the tax was imposed only on in-state sales.  There was no use tax.  As businesses began to