New Utah legislation declares that starting January 1st, 2023, supplies will be exempt from property tax. This also includes the transportation cost, known as freight-in. A “supply” is an item without the intent of being sold. It is held for personal use and will be used or disposed of in the provision of the taxpayer’s business activity, in a year or less. However, no records of consumption are necessary. The different categories of a “supply” are an office supply, a shipping supply, a maintenance supply, a replacement part, a lubricating oil, a fuel, or an item consumed while operating the business.
State specific taxes can be complex and difficult to interpret.