Understanding Utah Use Tax and Related Sales Taxes

A tax known as the Utah Use Tax is levied on tangible personal property that is bought outside of Utah but utilized or consumed there. Additionally, taxable services that are rendered outside of Utah but are used or consumed there are subject to the tax. The state’s current 4.85% sales tax rate is the same as the rate of the use tax in Utah.

Individuals, companies, and organizations who buy tangible personal property or taxable services outside of Utah but use or consume them inside the state are subject to the Utah Use Tax. Furniture, electronics, clothing, and vehicles are a few typical examples of taxable things that are subject to the Utah Use Tax.

According to Utah law, companies are required to gather and send sales tax on all taxable transactions that happen within the state. However, a lot of companies buy products and services from out-of-state suppliers who don’t charge sales tax in Utah. In these circumstances, it is the buyer’s responsibility to report and pay the Utah Use Tax on the purchased goods.

The state of Utah relies heavily on the revenue generated by the use tax. It aids in ensuring that all companies, domestic and foreign, are subject to the same tax laws and rules. Due to their obligation to collect and remit sales tax on all taxable transactions, businesses operating in the state of Utah are given a fair playing field thanks to the Utah Use Tax. Which state does not impose a sales tax?

Only one state—Oregon—in the union levies no sales tax on purchases made there. This indicates that there is no state sales tax levied on transactions made by customers in Oregon. Does Nevada have a local sales tax as a result? Nevada does have a local sales tax, yes. The state’s current sales tax rate is 6.85%, but depending on where the transaction takes place, municipal sales taxes may be added on top of that for a total of 1.25%. Is there a sales tax on automobiles in Nevada?

In Nevada, there is a sales tax on automobiles. The 6.85% general sales tax rate in Nevada also applies to the purchase of motor vehicles. In Nevada, there may be a few exceptions and specific regulations that apply to the selling of automobiles.

In Utah, the 2020 sales tax rate is 4.85%. All taxable transactions occurring within the state, including the sale of tangible personal property and taxable services, are subject to this rate. Depending on the location of the transaction, additional local sales taxes might be applicable.