Generally, Consumer Tax States are those states that impose a sales tax on buyers. In general, Consumer Tax States in the U.S. are states where the sales tax is imposed on the consumer, rather than on the seller’s privilege to do business.
Sellers in these states act as collectors on behalf of the state. The tax is on the consumer’s purchase, and sellers should generally collect it from the buyer and remit it to the state.
States such as New York and Alabama are categorized as Consumer Tax states. In summary, sales tax primarily applies to sales made to the end user or ultimate consumer.