This Use Tax prevents so-called tax "cascading" or "pyramiding," in which an conversation piece is taxed expanded than once as it makes its kick from production to final retail sale. There are several types of sales taxes: Seller or Vendor Taxes, Consumer Excise Taxes, Retail Transaction Taxes, or Cost Added Taxes.

A related type of tax is the value-added fine or VAT. It is a coordination in which all businesses remit taxes on their sales but they are also refunded the amount of VAT remitted by their suppliers. In augmentation to avoiding cascading, under VAT there is no need for influence to determine which sales are taxable and which are not, since all sales--retail, in bulk and intermediate--are taxed.