Consumer Use Tax
Use tax is assessed upon tangible personal property purchased for use, storage or consumption of goods in Georgia where Georgia sales tax has not been paid. Use tax is assessed at the same rate as the sales tax that would have been owed had the same goods been purchased in the state of Georgia. Use tax applies when sales tax has not been charged. Purchases made over the Internet and out-of-state are the most common type of transactions subject to a use tax.

Consumer’s use tax is a complement to the state and local sales tax. Consumer’s use tax is due only if the state and/or local sales tax was not paid. It is imposed at the same rate and on the same transactions as the sales tax. If the local sales tax is not properly paid on the original purchase of tangible personal property, the local consumer’s use tax is owed.

Consumer’s use tax is remitted directly to the state by the purchaser. Listed below are examples of transactions that are subject to consumer’s use tax:

  • Tangible personal property purchased by mail order, telephone, or the Internet without payment of Georgia sales tax;
  • Tangible personal property purchased out-of-state and delivered or distributed to a home or business in Georgia without payment of Georgia sales tax;
  • Tangible personal property or taxable services purchased in Georgia without payment of appropriate sales tax; and
  • Tangible personal property purchased tax-free for resale that are subsequently withdrawn from inventory for business or personal use, including items that will be given away as gifts or donations

REMITTING THE TAX

 
Individuals and businesses, that are not required to be registered with the Georgia Department of Revenue for the collection and remittance of sales and use tax may file a Georgia Consumer’s Use Tax Return, Form ST-3USE.

Businesses:
This return may be used by businesses that are not required to be licensed for sales tax but need to report their consumer’s use tax liability

Example: An accounting firm buys a computer from an out-of-state supplier and is not charged Georgia sales tax. Consumer’s use tax is due since Georgia sales tax was not paid.
 
Individuals:
Georgia Consumer’s Use Tax Return may be used by individuals to report their consumer’s use tax liability. Individuals should remit consumer’s use tax on the total amount paid for the items purchased including any amount paid for shipping and handling charges, warranties, labor charges, and other taxable services.

Example: An individual purchases a coat from a mail order catalog company and is not charged Georgia sales tax. Consumer’s use tax is due since Georgia sales tax was not paid.