In Utah, services and some tangible personal goods are subject to sales tax. Construction work, however, is not taxed because it is exempt from sales tax. This implies that labor charges made by contractors, subcontractors, and other industry experts are not subject to sales tax. Utah Exempt Sales *
While some products in Utah are exempt from sales tax, construction work may not be one of them. In Utah, a few of the exempt sales include: Food and groceries are generally excluded from Utah’s sales tax, although there are a few exceptions.
– Prescription medications: In Utah, prescription medications are also exempt from sales tax. – Medical goods and equipment are exempt from sales tax in the state as well. Utah’s Salt Lake City has a sales tax.
Utah’s capital, Salt Lake City, levies a sales tax on a variety of goods and services. A state rate of 4.7% and a municipal rate of 2.15% combine to make up the city’s current sales tax rate of 6.85%. Packaging Materials in Utah
Boxes, bags, and tape used for packaging are subject to Utah sales tax. However, the packaging supplies are also excluded from sales tax if they are used in conjunction with the sale of an exempt good, such as food or medical supplies. Tax on Market Facilitators
Like many other states, Utah has enacted a tax on marketplace facilitators. This indicates that third-party sellers’ sales tax must be collected and remitted by online retailers like Amazon and eBay. With the help of this tax, all purchases—including those made from out-of-state vendors—are guaranteed to be subject to sales tax collection.
In conclusion, Utah does not tax labor used in the construction industry, but some products and services, like food and medical supplies, are exempt. Packaging supplies must be taxed in Salt Lake City at a rate of 6.85% unless they are sold with an item that is exempt from it. Last but not least, Utah has enacted a marketplace facilitator tax that mandates online retailers to gather and send sales tax on behalf of their third-party sellers.