Use tax is a type of a tax that residents have to pay for things purchased outside the state that will be used within the state.
Residents will only pay use tax for items on which no use tax or sales tax has previously been collected.
The transaction on which the use tax has been collected would have otherwise been subject to sales tax if the transaction was made within the state.
When it comes to the rate of use tax, it is generally the same as the sales tax rate if the transaction was made within the state.
Use tax usually comes into play when the retailer is located outside the state and has no physical location in the state. In some cases, retailers on their customers' behalf collect the sales tax (for convenience purposes only).