What is the meaning of Use tax?

Use tax is a tax on merchandise purchased beyond a state's sales tax boundaries but which will be used within the resident's state. It is the same rate as the state's sales tax and consumers must pay it on any merchandise they bought sales-tax-free from an out-of-state (or foreign, Internet or catalog) merchant. If you did pay sales tax at the time of the out-of-state purchase, you generally do not owe the use tax. If you did not, many states require you file a special form or report the taxable purchase o.