State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Utah (UT)

UT Sales Tax - Name of Tax and General Application:

Utah imposes a tax on sales at retail of tangible personal property and specified services in the state. This tax is known as a "sales tax". In addition a tax is imposed on use, storage or consumption of tangible personal property in the state and services rendered in the state. This tax is known as a "use tax" or "excise tax" and only applies where no sales tax has been paid.

UT Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Utah imposes nexus on an out-of-state vendor that regularly or systematically solicits sales in the state using catalogs, magazines, flyers, or other advertising, whether by print, radio, TV, mail, telephone, computer database, cable, or other communication system.

UT Local Tax - Do Localities Impose Tax?

Yes, Utah imposes local sales tax.

UT Resale Certificate Renewal Agreements:

Sales for resale are exempt from tax in Utah.

UT Resale Certificate Renewal Periods

Certificates do not expire. It is recommended that they be renewed every three years.

UT Statute of Limitations

Three years from the date the return was filed.