A use tax is assessed for the use, storage, or consumption of something in a state, regardless where the purchase was made. If a computer is bought while visiting a state that doesn’t charge sales tax, the buyer may still need to pay a use tax when returning home. Iowa has use-tax exemptions for prescription drugs and medical devices, including catheter trays, oxygen equipment, when they’re sold to the user (rather than a business).
Pity the poor candy-store owner. In Illinois, Twix bars aren’t taxed because they are made with flour, so they don’t meet the state’s definition of candy. Other Mars candy bars such as Snickers, though, are taxed, because they contain no flour. Similar laws are on the books in Washington, Colorado, and Connecticut.
Those trying to stay warm during the Minnesota winter should think twice before buying a fur coat. Real fur is subject to sales tax — 6.875 percent statewide plus local taxes. The tax applies to fur coats bought online, as well. Fake fur, however, isn’t taxed.