Sales Tax Updates in Utah

Tax Professionals' Resource
January 12, 2013 — 1,405 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

In order to maintain compliance with the law, it is important to remain up to date with your knowledge of the Utah sales tax rules and regulations. Sales tax rates are, in fact, not the same in all areas of Utah. The rates can vary, ranging anywhere from 5.95% to 7.95% depending on which region of the state you are located in. It is also worth keeping in mind that a portion of the sales taxes paid in a particular city will go towards services that are provided for that city. So, if you wish to maximize the benefit of the sales taxes you pay, it is wise to do your spending close to home whenever possible.

Despite some minor variables, sales taxes throughout the state of Utah are broken down in essentially the same way. 4.7% of the tax goes to the state government. Meanwhile, 1% of the tax goes toward the city, and 0.25% of the tax goes to the county. Groceries are accompanied with a 3% tax in all regions of the state. 1.75% of the grocery tax goes to the state, 1% goes to the city, and 0.25% goes to the county. Typically, restaurants and other prepared food services are taxed at about 1% above the normal local rate. The taxes charged on hotel rooms vary from 9.3% to 11.6%.

Additionally, local governments have the power to charge additional taxes for services such as local parks and zoos, mass transit, highways, resort communities, and rural hospitals. Of course, these taxes have to be approved by voters of the areas they affect, so it is a good idea to stay abreast of current elections in your area. Certain states have sales tax holidays. Utah, however, does not.

Regardless of which part of Utah you're from, it's probably a good idea to know the details of the tax system in Salt Lake City, considering the fact that it is the business and financial center of the state, in addition to being the capital. It has a state sales tax of 4.7%, local sales tax of 1%, and a mass transit tax of 0.3%. There is an additional mass transit tax of 0.25%, a county option transportation tax of 0.25%, a botanical/cultural/zoo county tax of 0.1%, and a county option sales tax of 0.25%. With these updates, you should have no trouble complying with state tax code.


Tax Professionals' Resource