What refers to the tax on purchases for which no state sales tax has been charged?

The term that refers to the tax on purchases for which no state sales tax has been charged is known as use tax. This tax applies to items purchased out-of-state or online where the seller didn’t collect state sales tax at the time of sale. It is typically calculated at the same rate as the state sales tax and is designed to ensure that the state captures tax revenue on purchases that would otherwise have been taxed if bought from a local retailer.

Many states implement this tax to maintain fairness in the marketplace, so local businesses are not placed at a disadvantage compared to out-of-state sellers, who may not charge sales tax. Individuals are usually required to report and pay use tax on their state income tax return for taxable items purchased that were not taxed at the point of sale.

In contrast to this, excise tax applies to specific goods (like gasoline or alcohol) and is not directly related to general purchases. Sales tax is the tax that consumers pay at the store when items are purchased, and luxury tax generally pertains to goods that are considered non-essential or high-end, often applied to luxury items rather than to general purchases.