Frequently Asked Questions about Utah Sales and Use Taxes

How do I get a sales tax number?

You can apply online through Utah’s OneStop Online Business Registration service or by mail using Form TC-69, Utah State Business and Tax Registration. Your sales tax license will be mailed to you within 30 days of approval.

If you or other listed owners, partners, officers, members or trustees have a history of filing or paying sales tax late, you must pay the outstanding liabilities and/or post a surety bond before receiving a new sales tax license.

What is nexus?

Nexus means a business has established an established presence in the state. Having Utah nexus requires a seller to collect and remit certain taxes, including sales and use tax. on nexus, See Publication 37, Business Activity and Nexus in Utah for complete information.

When are my returns due?

Due dates for sales tax returns are based on the previous year's tax liability.

Yearly Tax Liability	Filing Status
$999 or less	Annual
$ 1,000 to $49,999	Quarterly
$ 50,000 to $95,999	Monthly
$ 96,000 or more	Monthly Mandatory Electronic Filing

Sales tax returns are due the last day of the month following the period end (for example, returns for annual filers are due January 31). If a due date falls on a Saturday, Sunday, or legal holiday, the due date becomes the next business day.

New businesses estimate the amount of sales and use tax liability when applying for a license and are assigned a filing status. The Tax Commission reviews accounts annually and notifies businesses in writing if the filing status changes.

Why did I receive a billing notice when I had no sales and didn't use my account?

Every sales tax license holder must file returns with the Tax Commission on a timely basis, according to your filing frequency, even if sales tax was not collected for that month, quarter, or year.

If:	You Should:
Your business is still active but you didn't’t collect sales tax for a period,	Fill in your return with zeros and submit to the Tax Commission.
Your business has been closed,	File form TC-69C, Notice of Change for a Sales Tax Account, or notify the Tax Commission in writing.
Your business has changed ownership, business name, business location or has added locations,	File form TC-69B, Additional Business Locations for a Sales Tax Account.

Note: Failing to file returns on time can result in penalties and interest. Further delay could result in liens against your property.

Are services taxable?

Assisted sales to wash or clean tangible personal property are taxable. Assisted sales occur when the labor to clean or wash the tangible personal property is performed by an employee of the seller.

Other types of labor performed in connection with the sale of tangible personal property are taxable. See Publication 25, General Sales Tax Information.

What is the difference between real property and tangible personal property?

Real property, realty or real estate is:

• Any right, title, estate, or interest in land including all minerals located in, on, or under the land.
• All buildings, fixtures, and improvements on land.
• All water rights, rights-of-way, rents, issues, profits, income, tenements, inherited property, claims (including mining claims), and privileges belonging to, used, or enjoyed with the land or any part of the land.

Tangible personal property is:

• Property that may be seen, weighed, measured, felt, touched or is in any manner perceptible to the sense.
• Tangible personal property includes electricity, water, gas, steam, prewritten software, and digital and electronic goods.

Tangible personal property is NOT:

• Real estate or any interest or improvements in real estate.
• Bank accounts, stocks, bonds, mortgages, or notes.
• Insurance certificates or policies.

What is the difference between sales and use tax?

Use tax is a tax on goods or taxable services purchased for use, storage or other consumption in Utah. Use tax only applies if sales tax is not applicable or if sales tax was not paid at the time of purchase. If you purchase an item from an out-of-state retailer for use in Utah and the retailer does not collect the tax, you must pay the use tax directly to the Tax Commission.

• If the tax amount exceeds $400 annually, you are required to register and report the use tax on a Sales and Use Tax Return (Form TC-62S or Form TC-62M).
• If the use tax does not exceed $400 annually, you may report the use tax on your personal Utah Individual Income Tax Return (Form TC-40) or Utah business income tax return.

How do I get a sales tax exemption number for a religious or charitable institution?

• Complete an Application for Sales Tax Exemption Number for Religious or Charitable Institutions, Form TC-160.
• Attach a copy of the determination letter from the IRS qualifying your organization as exempt from tax under Section 501(c)(3) of the Internal Revenue Code.
• Mail all information to:
  
  Utah State Tax Commission
  Technical Research Unit
  210 North 1950 West
  Salt Lake City, Utah 84134-3212

What is an exemption certificate, TC-721?

Form TC-721, Exemption Certificate is an exemption certificate for sales, use, tourism and motor vehicle taxes. The purchaser must be qualified under Utah Tax Code to receive such an exemption. The purchaser completes the exemption certificate form to purchase items tax exempt. The seller retains completed exemption certificates. The supplier or retailer selling items or services to exempt customers is required to keep records verifying the nontaxable status of such sales. Records are to be kept for a period of three years.

What is my sales tax rate?

Your sales tax rate depends on where you are doing business in Utah and the type of business you are conducting. Tax rates are available online at Utah Sales & Use Tax Rates or you can phone the Tax Commission at (801) 297-2200 or toll-free 1-800-662-4335 and ask a Customer Service agent. According to Utah law, rates may change quarterly. Sales tax license holders are encouraged to periodically check sales tax rates.

Are transportation or delivery charges in connection with the sale of goods taxable?

No, transportation charges or delivery charges are not taxable when separately stated on an invoice.

Why didn't I receive my sales tax return in the mail?

If you changed your business name or address without notifying the Tax Commission, your form may have been returned as undeliverable. If you did notify us, the update may not have occurred in time to reflect the correct information in your billing cycle.

Will I be able to use the old form TC-61 and schedules?

You must use the TC-62 forms and schedules. If you use the incorrect forms, it will delay the processing of your return.

The only time to use old TC-61 forms and schedules is if you are filing a late return or an amended return for a period(s) beginning prior to January 1, 2008. All forms are available on our website at tax.utah.gov/forms/.

Can sellers who use substitute forms continue to use these forms?

The sales tax returns and schedules are updated as changes occur to Utah law. Users and developers of substitute forms must comply with all changes and have approval from the Tax Commission prior to filing the forms or releasing the forms to their customers. Please refer to Tax Commission Publication 99 for substitute forms requirements.

Where can I get more information?

You have three options for more information:

1. Review the Online Sales and Use Tax Workshop
2. Attend a Sales and Use Tax Workshop
3. Contact the Technical Research Unit at (801) 297-7705 or 1-800-662-4335 ext. 7705. Agents are available Monday through Friday (excluding holidays) from 8:00 a.m. to 5:00 p.m.