Use tax is collected from an out of state buyer which is an alternative of a sales tax. It is imposed by the division of taxation and finance or department of revenue to maintain discipline in sales tax collection and stop injustice with the local vendors.

The Southeastern Association of Tax Administrators (SEATA) exchanges information to help ensure transactions are taxed fairly across state boundaries. Member states collect and exchange audited sales and purchases information for other member states. Customers who are identified through audit verification will be billed for use tax, penalties, and interest.

The SEATA member states are:Alabama,Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia.