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.
Sales tax is paid by the seller or lessor, but use tax is usually paid by the BUYER/LESSEE. Purchases. or rentals which would have been taxable but have so far not been taxed may be subject to use tax. Some common situations where use tax is due are purchases from out-of-state vendors or vendors not.