Sales and use taxes

Taxable goods

What goods are subject to sales and use tax in your state (at both state and local level)?

The sales and use tax is imposed on all sales, rentals, leases, uses, storage and consumption of tangible personal property in this state and on certain enumerated services. Taxpayers should refer to Tax Commission Publication 25, Revised 6/21 https://tax.utah.gov/forms/pubs/pub-25.pdf.

State rate

What is the state sales tax rate?

Utah’s current state sales and use tax rate is 4.85 per cent.

Local rates

What is the range of local sales tax rates levied in your state?

Local tax rates vary depending on which local sales and use taxes are imposed by a particular jurisdiction. The current range of the total state tax rate and local tax rate is 6.10 per cent to 9.05 per cent, with the higher range of rates generally located in Utah’s resort communities.

Exemptions

What goods are exempt from sales and use tax?

Currently, there are 89 statutory sales and use tax exemptions provided in UCA § 59-12-104 https://le.utah.gov/xcode/Title59/Chapter12/59-12-S104.html. Exemptions are often ‘pigeon-holed’ into the following classifications https://tax.utah.gov/forms/pubs/pub-25.pdf:

  • entity-based exemptions;
  • use-based exemptions; and
  • product-based exemptions.
Services

Are any services taxed?

Yes, the following services are subject to Utah’s sales and use tax:

  • certain telecommunications services;
  • repairs or renovations of tangible personal property;
  • assisted cleaning or washing of tangible personal property; and
  • laundry or dry cleaning services.
Filing requirements

What filing requirements and procedures apply?

Persons subject to the Utah sales and use tax are required to obtain a sales and use tax license. Sellers must generally use accrual basis accounting to report sales and taxable uses. Generally, returns must be filed electronically. If annual sales tax liability is less than $1,000 per year, a seller may file annually. If sales are between $1,000 and $50,000, a seller will generally file quarterly, and if a seller’s annual sales tax liability is $50,000 or more, the seller must file monthly. Quarterly tax returns are due on April 30, July 31, October 31 and January 31. Monthly taxpayers are required to file a return on or before the last day of the month following the month for which the return is filed. Monthly filers are allowed a 1.31 per cent discount to offset the administrative cost of filing. If a taxpayer has an annual tax liability of $96,000 or more, the taxpayer is required to pay via electronic funds transfer.