Training Home – Understanding Taxes – State and Local Taxes – Three Primary Taxes

State & Local Taxes

Lesson 2: Three Primary Taxes

Hyperlinks provide the student with flexibility. You may go through the lesson sequentially or you may use the major heading links to go directly to a more detailed history and overview of a tax.

There are three primary taxes that are the main sources of revenue for the operation of state and local governments in Utah. They are introduced here and will be discussed in more detail throughout this lesson. 

Sales and Use Taxes

Sales and use tax is paid by consumers who purchase merchandise from retail stores, vendors on the Internet, mail order companies, restaurants, vendors at art shows and fairs, and home businesses. The following items are examples of merchandise or goods we purchase that are subject to sales and use tax:

Property Tax

Property tax applies to items we own that are not consumables. Following are some examples of items that are subject to property tax:

Income Tax

All revenues from income tax go to education. Some sources of income tax are:

Students may want to conduct an in-depth review of the collection and distribution of taxes in Utah. The most current statistical analysis of the collection and distribution of taxes is available in the Utah State Tax Commission Annual Report for Fiscal Year 2005-2006. The annual report will provide you with statistical data, charts and graphs which summarize revenue collections by specific fund and how they are distributed.