How to Get a Sales Tax Exemption in Utah

You can save a lot of money by not having to pay sales tax on your purchases if you are a business owner or an organization that is eligible for tax exemption in Utah. In Utah, there are a few procedures you must take to achieve tax exemption status.

Make sure your company or group is eligible before applying for tax exemption status in Utah. Certain categories of entities, including non-profits, religious institutions, and governmental bodies, are free from taxes in Utah. The website of the Utah State Tax Commission has a list of qualifying entities.

2. Submit an application for tax exemption You must apply for tax exemption status after determining that your company or organization qualifies for tax exemption in Utah. The Utah State Tax Commission will accept this by having you fill out the Application for Exemption from Sales and Use Tax form. You’ll have to present documentation proving your eligibility, like your IRS tax-exempt status letter or your articles of incorporation.

You must wait for the Utah State Tax Commission’s approval after submitting your application. The commission will assess your application and, if necessary, might ask for more details. You will receive a tax exemption number if your application is accepted, which you can use to make purchases in Utah.

4. Continue to qualify for tax exemptions If Utah has granted you tax exemption status, it is crucial that you continue to qualify. Every five years, you must file a renewal application to the Utah State Tax Commission to maintain your tax-exempt status. Additionally, you must maintain complete records of your tax-exempt purchases and make them available to the commission upon request.

Determine whether your company or organization is eligible for tax exemption before applying for tax exemption status with the Utah State Tax Commission. You’ll have to present documentation proving your eligibility, like your IRS tax-exempt status letter or your articles of incorporation.

All taxpayers in Utah are subject to a flat income tax rate of 5%. This implies that you will pay 5% in state income tax, regardless of your income level. How much sales tax is there in Utah?

Utah has a 4.85% sales tax. There might, however, be extra local sales taxes, which vary by county and city. Before making a purchase, it is crucial to confirm the applicable local sales tax rate in your area. How much sales tax is there in Utah County?

In Utah County, the sales tax rate is 6.75%. This includes additional municipal sales taxes in addition to the state’s 4.85% sales tax rate. Before making a purchase, it is crucial to confirm the Utah County sales tax rate.