re: Has anyone had any issue with their state 'Use' tax?

In general there is no record sent to the state. The online retailers claim that it would be too hard/expensive to track all of the taxing jurisdictions that they ship to. I do remember hearing about the state of Louisiana getting a hold of Thompson's Cigar Co's mailing list. They then looked at the returns filled for the customers to see if any use tax was paid. If none was paid, that triggered an audit. I don't think the state could prove how much use tax was due. I think there was another mail order company that they also did this with, but don't remember the name. This was at least 6 years ago.