You must be aware of the state’s appropriate sales tax rate if you intend to buy products or services in Utah. Utah’s sales tax for 2021 is 4.85%. There are additional sales tax rates that can be imposed by some towns and counties, ranging from 1% to 3.5%. Nevertheless, the total sales tax rate in Utah can vary from 5.85% to 8.35%.
However, how can you figure out the Utah sales tax on your purchase? The procedure is rather easy to follow. The purchase amount needs to be multiplied by the local sales tax rate. For instance, you would pay $107.85 ($100 + ($100 x 7.85%)) if you were purchasing a $100 item in Salt Lake City, where the sales tax rate is 7.85%.
In addition to being aware of the sales tax rate, you also need to know how and when to file your Utah sales tax reports. Every company that does taxable business within the state must apply for a sales tax permit with the Utah State Tax Commission. Online or postal registration is an option. Once you have your permit, you must charge your customers the correct sales tax rate and submit your sales tax returns on time.
You have two options for submitting your Utah sales tax returns: online through the Tax Commission’s system or by mail. In Utah, the last day of the month after the end of the reporting period is when sales tax reports must be filed. For instance, the deadline to submit a return for the January-March quarter is April 30. Penalties and interest fees may apply if your returns are not filed on time.
Next, let’s discuss Utah’s vehicle registration fees. The type of vehicle, its age, and the county where you reside are just a few of the variables that affect how much it costs to register a car in Utah. For instance, a passenger car under 12,000 pounds must pay $44 for its initial registration. The registration charge reduces to $32 if your automobile is three years or older, though. You can also have to pay additional charges including those for safety inspections, license plates, and local option transportation corridors.
And finally, does Utah charge sales tax on transactions made outside the state? Yes, Utah levies a usage tax on items bought from non-resident sellers who do not charge sales tax. In Utah, the use tax rate is equivalent to the local sales tax rate. If you spend more than $500 on items from out-of-state vendors, you must declare and pay use tax on your Utah income tax return.
In conclusion, whether you live in Utah or run a business there, it’s critical that you grasp the use tax laws, car registration fees, and sales tax rates. To prevent fines and interest costs, be sure you abide by all tax rules and regulations.
Yes, Utah citizens who make purchases outside of the state are subject to sales tax. This is referred to as the use tax and it is a separate tax from the sales tax. The use tax is intended to ensure that citizens of Utah pay the same amount of tax on items they buy from out-of-state merchants or online as they would have if they had made the transaction locally.
You have two options for submitting Utah sales tax returns: either electronically through the Taxpayer Access Point (TAP) system of the Utah State Tax Commission, or by mailing a paper return to the commission. Before filing, you must get a sales tax license and open a Utah state tax account. The last day of the month after the conclusion of the reporting period is when Utah sales tax filing and payments are due.