Princeton's WordNet(1.00 / 1 vote)Rate this definition: 1  word(noun) a unit of language that native speakers can identify. words are the blocks from which sentences are made; he hardly said ten words all morning. 2  word(noun) a brief statement. he didn't say a word about it.
An aspect of fiscal policy. A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax.
Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase. 1  For example: 2  If you buy a taxable item in Florida and did not pay sales tax, you owe use tax. 3  If you buy an item tax exempt intending to resell it, and then use the item in your business or for personal use, you owe use tax.