Individuals are responsible for use tax on purchases made after January 1, 2004 for which they did not pay Massachusetts sales tax. The use taxes should be filed annually either with their personal income tax return or with a use tax return. The liability may be based on the taxpayer’s Massachusetts adjusted gross income (AGI) or on the exact amount of applicable purchases made during the year. For purchases of items under $1,000 taxpayers will pay $0 if AGI is $0 to $25,000; $15 if AGI is $25,001 to $40,000; $25 if AGI is $40,001 to $60,000; $35 if AGI is $60,001 to $80,000; $45 if AGI is $80,001 to $100,000; and 0.0005 times AGI if it is greater than $100,000. For purchases of items costing $1,000 or more the liability would be the use tax liability (the 5% Massachusetts sales tax rate times the price of the item) plus the amount calculated with AGI as above. (H.B. 4744, May 18, 2004)