compensating use tax
Defined in 1 place of the United States Code.
A compensating use tax with respect to an item shall be treated as a general sales tax. For purposes of the preceding sentence, the term “compensating use tax” means, with respect to any item, a tax which—
(i) is imposed on the use, storage, or consumption of such item, and
(ii) is complementary to a general sales tax, but only if a deduction is allowable under this paragraph with respect to items sold at retail in the taxing jurisdiction which are similar to such item.
Source
- 2005–present26 U.S.C. § 164Internal Revenue Code · Taxes · for purposes of this section