Monticello (San Juan County) will impose a .3 percent highways/public transit tax. Monticello will also impose a .1 percent city/town tax to fund recreational and zoological facilities and botanical, cultural, and zoological organizations. This results in a combined sales tax rate in Monticello of 6.35 percent.
Eagle Mountain (Utah County) will impose a .25 percent public transit tax. This results in a combined sales tax rate in Eagle Mountain of 6.75 percent.
Repeals the requirement for an owner or purchaser to report transsactions exempt from sales tax under the manufacturing and semiconductor sales tax exemptions. The reporting requirement will be removed from the Sales and Use Tax Return.
Provides that appliances (dishwasher, freezer, refrigerator, microwave, stove, washer, dryer, or similar items) are always tangible personal property for sales tax purposes, regardless of whether or how the appliance is attached to real property.
Provides that prepaid telephone service (for example, a prepaid calling card) is taxable for in-state calls. Prepaid telephone services are considered in-state telephone services if the card can be used for in-state calls. If the card can only be used for interstate or international calls, it can be sold tax free.
Exempts from sales tax any airline in-flight sales of tangible personal property or a product transferred electronically.
Effective Oct. 1, 2008, HB 2001 (Sales and Use Tax Exemptions for Aircraft Parts and Equipment) modified the sales tax exemption for aircraft parts and equipment to an exemption for sales of parts and equipment installed in an aircraft operated by a common carrier in interstate or foreign commerce. You may request a refund for any exempt sales that occurred between July 1 and Sept. 30, 2008.
Rules for applying tax rates to recurring lease payments will change Jan. 1, 2009. You may be affected if you lease tangible personal property to customers. Businesses who lease tangible personal property with recurring lease payments must use form TC-62M, Sales Tax Return for Multiple Places of Business. See chart below or Publication 25, Sales and Use Tax General Information, for more information.
| Transaction Type | Source to: | Exceptions |
|---|---|---|
| Retail sale of tangible personal property in Utah (including products transferred electronically). | Seller’s fixed place of business (whether or not the goods or services are delivered) | If the seller does not have a fixed place of business (vending machine operators, mobile
tool companies, etc.), source to the location where the sale takes
place. Sales at special events (fairs, swap meets, etc.) are sourced to the event location. |
| Retail sale of taxable services in Utah when seller sells, leases or rents any tangible personal property (including products transferred electronically). | Seller’s fixed place of business OR customer's location (seller's preference) | If the seller does not have a fixed place of business (vending machine operators, mobile
tool companies, etc.), source to the location where the sale takes
place. Sales at special events (fairs, swap meets, etc.) are sourced to the event location. |
| Retail sale of taxable services in Utah when seller does not sell, lease or rent any tangible personal property (including products transferred electronically). | Cutsomer's location | |
| Retail sales of tangible personal property or taxable services from outside Utah (including products transferred electronically). | Customer's/Buyer’s location (the place the buyer receives the service or property) | |
| Retail sale of admissions | Location of activity or event (regardless of ticket purchase location) | |
| Lease or rental of tangible personal property (other than motor vehicles, semi-trailers, trailers 10,000 pounds or less, and aircraft) and products transferred electronically. | Seller’s fixed place of business for down payment and first payment
Customer’s address for subsequent payments |
If there are no recurring payments:
|
| Lease or rental of motor vehicles, semitrailers, trailers 10,000 pounds or less, and aircraft | Customer’s address for all payments, including down and first payments |
See Utah Code §§59-12-211, 59-12-212, 59-12-213 and 59-12-214
Electronic data is still taxable under Utah’s new definition of products transferred electronically. A purchase of a product transferred electronically is taxable if a physical copy of the product would be taxable. For example, the purchase of a music CD is taxable, so downloaded music is taxable. Other examples include:
Hearing aids and dental prostheses are now included in the definition of prosthetic device. The new definition of prosthetic device is an item worn in or on the body to:
A prosthetic device includes:
The sales of prosthetic devices are exempt from sales tax if used in or on a human and:
A prosthetic device does not include:
A bundled transaction is the retail sale of two or more separate products that are sold for one combined price. If any part of the bundled transaction is subject to tax, the entire transaction is taxed unless the seller keeps separate records of the tax-exempt portion of the transaction.
Utah has changed its sales and use tax laws. Effective Jan. 1, 2009, sales of items shipped into Utah by non-nexus sellers must be taxed at the full combined rate for the delivery location. The state-wide rate of 5.9 percent no longer applies.
For example, starting Jan. 1, 2009, the sale of an item shipped to:
Refer to the rate table at tax.utah.gov/sales/ to find the exact rate for all locations.
For periods starting Jan. 1, 2009, non-nexus voluntary filers must report sales on form TC-62M with Schedule B. Grocery foodsellers must also file Schedule BG.
| Form Number | Form Name |
|---|---|
| TC-62S | Sales and Use Tax Return for Single Place of Business |
| TC-62M | Sales and Use Tax Return for Multiple Places of Business |
| Schedule B | Sales of Non-food and Prepared Food from Places Other Than Fixed Utah Locations |
| Schedule BG | Sales of Grocery Food from Places Other Than Fixed Utah Locations |
You may file your sales tax return and pay online at tax.utah.gov/online.
