Utah Use Tax
Utah Use Tax is a tax imposed on goods purchased for use, storage, or consumption in Utah when no sales tax was collected at the time of purchase. This tax applies to out-of-state purchases, online purchases, or goods bought from vendors who do not collect Utah sales tax.
When Does Utah Use Tax Apply?
- Purchases made from out-of-state retailers who do not collect Utah sales tax.
- Goods bought online or through mail order where no sales tax was charged.
- Items acquired for use, storage, or consumption in Utah, regardless of where purchased.
How to Report Utah Use Tax
Utah Use Tax is reported on Form TC-40, the Individual Income Tax Return. Specifically, it is included in the "Tax from Recapture of Low-Income Housing Credit Worksheet" section, where line 31 is designated for Utah Use Tax.
Calculating Utah Use Tax
Utah Use Tax is typically calculated at the same rate as the state’s sales tax, which is 4.85% for most transactions. However, local taxes may increase the total rate depending on the county or city.
Reporting Requirements
- Include Utah Use Tax on Form TC-40, line 31.
- Attach any required schedules (e.g., TC-40A, TC-40S) if applicable.
- Keep records of purchases and tax calculations for audit purposes.
Important Notes
- Utah Use Tax is not a separate form; it is reported as part of Form TC-40.
- Taxpayers must self-report use tax if no sales tax was collected at purchase.
- Use Tax applies to both individuals and businesses purchasing goods for use in Utah.
Source:
TC-40 Forms and Instructions
Publication 25 - Sales and Use Tax General Information
Disclaimer: Always verify with the Federal or State Department of Revenue Forms and Instructions for the most current and accurate information.