<P> For example, a resident of Massachusetts, with a 6.25% "sales and use tax" on certain goods and services, purchases non-exempt goods or services in New Hampshire for use, storage or other consumption in Massachusetts . Under New Hampshire law, the New Hampshire vendor collects no sales taxes on the goods, but the Massachusetts purchaser / user must still pay 6.25% of the sales price directly to the Department of Revenue in Massachusetts as a use tax . If the same goods are purchased in a US state that does collect sales tax for such goods at time of purchase, whatever taxes were paid by the purchaser to that state can be deducted (as a tax credit) from the 6.25% owed for subsequent use, storage or consumption in Massachusetts . With few exceptions, no state's vendors will charge the native state's sales tax on goods shipped out of state, meaning all goods ordered from out - of - state are essentially free of sales tax . The purchaser is therefore required to declare and pay the use tax to his home state on these ordered goods . </P> <P> The assessing jurisdiction may make the use tax payable annually, but some states require a monthly payment . For example, where a Vermont resident has not paid at least 6% sales tax on property brought in for use in the state, Vermont law requires filing a tax return (Form SU - 452 and payment) by the 20th day of the month following non-exempt purchases to avoid a $50 late fee, a 5% penalty per month, to a maximum of 25%, plus statutory interest on the unpaid tax and penalties . </P> <P> There are currently over 14,000 tax jurisdictions in the U.S. and many of these jurisdictions have varying taxability on services . Given the volume of jurisdictions, the source of the sale may also need to be examined, in order to appropriately apply and remit the tax . For instance, states may require use tax based upon the location in which the service was provided, while other states may require use tax based upon the location of "benefit". In traditional repair and maintenance type services, these locations will typically be one and the same, however with complex technology transactions, these locations are often different . </P> <P> In most cases, this complexity is part of the underlying sales tax laws; but while a brick - and - mortar store has to deal with only the sales tax laws of its own location, remote sellers have to deal with the use tax laws of many jurisdictions--up to every US state and locality that assesses them, if the company has a presence or "nexus" in every state (as large "brick - and - mortar" sellers like Wal - Mart and Best Buy do). </P>

Date you are first required to pay personal use taxes in massachusetts