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Businesses obtaining accounts with the Tax Commission must file their tax returns by the due date even if no tax is due. Penalties and interest apply to late returns and insufficient payments. If you change ownership, location, or add outlets or additional stores, you must notify the Tax Commission in writing. Every license holder who discontinues business is required to notify the Tax Commission immediately. Tax licenses or accounts are not transferable to new owners.
Every seller is required to keep adequate and complete records to determine the amount of tax for which they are liable.
Records should be preserved for a period of three years from the date the taxes are due or paid. Records shall be available for review upon request by the Tax Commission or its authorized agents. Failure to keep adequate records necessary to establish tax liability may result in the taxpayer's license being revoked.
Sales tax records must include:
If you are purchasing a business, Utah law requires you to withhold enough of purchase money to cover any sales and use, withholding and certain fuel taxes due and unpaid until the former owner of the business produces a receipt from the Tax Commission showing that the taxes have been paid or a certificate showing that no taxes are due. If you fail to withhold the required purchase money and the taxes remain due and unpaid 30 days after the business is sold, you will be personally liable for payment of the taxes collected and unpaid by the former owner.
Individuals who control the finances of a corporation, LLC, LLP, partnership, or other entity may be held personally liable for that entity's failure to collect or remit certain trust fund taxes. Trust fund taxes are monies that the entity is required to collect or withhold on behalf of the State of Utah. The following taxes are trust fund taxes:
If an entity required to collect trust fund taxes fails to collect or remit those taxes, the Tax Commission may assess a penalty equal to 100 percent of the unpaid trust fund taxes on any responsible individual within the entity.
The Tax Commission has the following applications for business tax registration:
This application is used to register your business for a Sales and Use Tax License, a Withholding Tax License, or a Cigarette/Tobacco License. When applicable, it will also register your business for tourism, transient room, motor vehicle rental, resort community taxes, and the waste tire recycling fee.
$500 minimum for either cigarettes or tobacco, or $1000 for both. Granting a license for sales tax and withholding is conditional. Applicants or fiduciaries of applicants with a history of filing and paying late are required to resolve past delinquencies and/or post a bond of at least $25,000 but not more than $500,000.
Special Events Taxation Unit
(801) 297-6303
1-800-662-4335 ext. 6303
A Temporary Sales Tax License and Special Return is required when an individual vendor and/or business participates in a one-time event, such as state and county fairs, conventions, hobby shows, gun shows, food shows, art shows, and other similar events where taxable sales are made. Vendors with a sales and use tax license must also obtain a Temporary Sales Tax License and Special Return if participating in one of these events. The license/return is only good for the event for which it is issued. The special return and all sales tax collected are due to the Tax Commission 10 days after the close of the special event or sale. To obtain a Temporary Sales Tax License and Special Return, contact the Special Events Unit.
This application is used to register your business for the following licenses and accounts:
Special Fuel Supplier License, for importers, refiners and blenders of diesel fuel
Form: TC-107
Fee: $30
Bond (required): $35,000 - $100,000 (TC-763)
Motor Fuel License, for importers, refiners, manufacturers or wholesalers of gasoline
Form: TC-107
Fee: $30
Bond (required): $35,000 - $100,000 (TC-763)
Aviation Fuel License, for importers, refiners, manufacturers or wholesalers of aviation or jet fuel
Form: TC-107
Fee: $30
Bond (required): $2,000 - $100,000 (TC-763)
Environmental Assurance Fee, for importers, refiners or manufacturers with the first sale or use in Utah of any petroleum product liquid at 60°F
Form: TC-107 or TC-107E
Businesses requiring IFTA (International Fuel Tax Agreement) Licenses or Special Fuel User Permits will use one of the following forms:
Form: TC-920F, IFTA License
Application
Fee: $4.00 per vehicle registered
Form: TC-920S, Special Fuel User
Permit Application
Fee: No fee
This application is used to register your business for a Mineral Production Withholding Tax Account.
Form: TC-675R
Fee: No fee
The following information is provided to help applicants determine who is authorized to sign the application forms for tax registration.
Businesses operating in Utah may be subject to several types of taxes. The following summaries should be used as guidelines to help you determine which taxes apply to your business.
Utah Code, Title 59, Revenue and Taxation, is available free of charge at the Utah Legislature's homepage.
Utah Tax Code is officially published by Matthew Bender & Co., Inc. under the trademark LexisNexis. The online site requires a subscription fee to access its services. Individuals or businesses may contact the publisher directly to order a hardcopy at:
Matthew Bender & Co., Inc.
Attn: Customer Support
1275 Broadway
Albany, NY 12204-2694
1-800-562-1197
The state makes every effort to maintain current information; however, published code found at LexisNexis may be more current.
Motor Carrier Services
210 North 1950 West
Salt Lake City, UT 84134
(801) 297-6800
1-888-251-9555
Commercial trucks, trailers or semitrailers based in Utah may qualify to be proportionately registered and licensed. Non-Utah based carriers that are not apportioned for Utah can purchase a temporary trip permit for up to 96 hours at the port of entry.
Rate: The vehicle registration fee is computed according to the registered weight and applicant's Utah mileage percentages.
Utah is a member of the International Fuel Tax Agreement (IFTA). Motor carriers can determine if they need an IFTA license or a Special Fuel User permit by the following guidelines:
See State Tax Registration section for information on application forms and fees.
Corporations with a tax liability of $3,000 or more in the current tax year, or with a tax liability of $3,000 or more in the previous tax year, must make estimated tax payments. Payments are due on the 15th day of April, June, September and December. Penalties apply on certain underpayments, late payments and late filings.
Form: TC-559 Corporate Franchise or Income Tax Payment Booklet
Utah does not require filing of estimated individual income tax, but does provide forms for taxpayers who would prefer to file and pay quarterly estimated tax. It may be paid on the same time schedule as the federal tax. The payment must be accompanied by a prepayment form.
Form: TC-546 Prepayment of Income Tax
Insurance companies are required to file a premium tax return regardless of the exempt nature or amount of their premiums. The insurance premium tax applies to all insured risks in the state including Workers' Compensation.
Insurance premium and self-insured tax returns are due on or before March 31 for the preceding calendar year. Prepayments are required if the prior year's tax liability was $10,000 or more. Prepayments are due the last day of April, July, and October. The final payment is due when the tax return is filed March 31.
Rate: The base premium tax is 2.25 percent. It is figured on the net taxable premiums received for life, property, and casualty insurance policies written in the state.
The Workers' Compensation premium tax rate is determined annually by the State Industrial Commission.
Title insurance premiums are taxed at a rate of .45 percent.
An additional surtax of .01 percent is assessed on motor vehicle liability, personal injury and uninsured motorist premiums.
Forms: TC-670 – Utah Insurance
Premium Tax Payment
TC-420B – Self Insurance Premium Tax
Payment
Returns: TC-49 – Insurance
Premium Tax Return
TC-420 – Self Insurer's Tax Return
Fuel taxes must be reported and remitted each month.
Aviation Fuel is used exclusively for the operation of aircraft. Aviation fuel used by federally-certificated air carriers is taxed at 4 cents per gallon. Aviation fuel used for other purposes is taxed at 9 cents per gallon.
Motor Fuel is gasoline or gasohol used for any purpose other than that for which aviation fuel is used. Motor fuel is taxed at 24.5 cents per gallon.
Special Fuel is any non-gasoline fuel used to operate a motor vehicle upon the public highways and is not taxed under the category of motor or aviation fuel. Diesel fuel is taxed at 24.5 cents per gallon. Special fuel tax on clean special fuels such as electricity, propane and compressed natural gas is paid by annually purchasing a Clean Special Fuel Certificate, form TC-596, for each vehicle that operates on clean special fuels.
Entities that meet any of the following criteria are required to be licensed and bonded:
Retail service stations buying and selling tax-paid fuel are not required to obtain a fuel tax license.
The conservation tax applies to owners holding interest in oil, gas and natural gas wells.
Rate: Two-tenths of one percent of the value at the well of oil, gas and natural gas liquids produced, saved and sold or transported from premises where produced.
Severance tax applies to extractors of metalliferous minerals such as gold, silver, copper, lead, iron, zinc, tungsten, uranium, vanadium, other valuable metals, oil, gas, and other hydrocarbonic substances.
Rate: 2.6 percent of the taxable value for products of metalliferous mines and metalliferous claims; 3-5 percent of oil and gas wells. Value is fixed at the well. Contact the Tax Commission for exemptions.
Businesses must pay property taxes. Contact the county assessor for the county in which you are doing business or the Utah State Tax Commission, if centrally assessed.
Taxes are levied on real and personal property. Real property includes land, buildings and other improvements. Personal property includes furniture, fixtures, machinery, equipment, supplies, etc. Personal property does not include inventory held for resale. A uniform in-lieu fee must be paid for passenger cars and lightweight vehicles.
Most business property is assessed by the county assessor. Personal property must be reported to the county assessor. Obtain the necessary forms and filing instructions from the county assessor.
Personal property taxes are due 30 days from the date the tax bill is mailed. Real property taxes are billed by November 1st and must be paid by November 30th. Contact your county assessor for further information.
Sales tax is a tax on the rental or sale of certain services and all tangible personal property. It is collected from the consumer by the seller and remitted to the Tax Commission on monthly, quarterly or annual returns. Sales tax returns are due on the last day of the month following each reporting period. If a due date falls on a Saturday, Sunday or legal holiday, the due date becomes the next business day.
Use tax is a tax on goods or taxable services shipped or delivered from out-of-state locations for use, storage, or consumption in Utah. Use tax applies if sales tax was due but not charged. If items are purchased from an out-of-state retailer for use in Utah and the seller does not collect tax, the consumer must pay the tax directly to the Tax Commission on a sales and use tax return or income tax return.
Sales tax is due at the point of sale. Use tax is applicable to point of delivery.
Once a business has registered with the Tax Commission for the collection of sales and use tax, a return must be filed whether or not sales or use tax is due. Penalties and interest apply to late returns, underpayments and late payments. Filing frequency is based upon the amount of annual sales and use tax liability.
| Annual sales and use tax liability | Your filing status is |
|---|---|
| $0 - $999.99 | Annual |
| $1,000.00 - $49,999.99 | Quarterly |
| $50,000.00 - $95,999.99 | Monthly |
| $96,000.00 or more | Monthly and EFT |
Businesses with an annual liability of $96,000 or more are required to pay the tax via electronic funds transfer (EFT). Seller discounts are available to those who file and pay monthly sales tax returns by the due date.
Forms: TC-69 – Utah State
Business and Tax Registration
Sales and Use Tax forms
Sales and use tax rates vary depending on the location of a business. Cities or counties may impose additional related taxes, such as, tourism, resort, and transient room taxes. Generally, the local tax rate is combined with the state tax rate for collection and reporting to the Utah State Tax Commission. Check with your city or county to determine if local taxes must be paid.
Tax rate charts are available online. Tax rates can change quarterly. Sellers are advised to quarterly check tax rates for their jurisdictions.
The beer tax applies to beer imported or manufactured for sale, use or distribution in Utah. Monthly reports are required on or before the last day of the following month.
Rate: $12.80 per 31 gallon barrel of beer.
Form: TC-386 Beer Tax Return plus applicable schedules
Distributor licensing is under the jurisdiction of the Utah Department of Alcoholic Beverage Control. Retail licenses are issued by local jurisdictions.
Department of Alcoholic Beverage Control
1625 South 900 West
Salt Lake City, UT 84104
(801) 977-6800
Where adopted, a .10 percent tax is imposed on the sale of taxable goods and services sold within the adopting county or city. If applicable, the tax will be included in the overall sales tax rate.
Cigarette retailers purchasing from licensed wholesalers or distributors require a license issued by the Tax Commission. A license is required for each business location. The license is valid for three years.
Cigarette wholesalers and distributors stamping cigarette products must be bonded in addition to the regular license.
Tobacco products wholesalers, distributors, and retailers purchasing products from non-licensed wholesalers and distributors must be bonded and licensed.
Application: TC-69 Utah State Business and Tax Registration
License Fee: $30.00 per location
$20.00 for three-year renewal
Forms: TC-553 Tobacco Products Tax
Return
TC-79 Cigarette Stamp Order Form
This tax is applicable to every retail sale of wine and distilled liquors sold by the Department of Alcoholic Beverage Control. Liquors are purchased from a state liquor store or agency and the tax is part of the total purchase price.
Rate: 13 percent of retail purchase price.
Information is included with Tourism Tax.
A tax of up to 6 percent may be imposed by a municipality on the delivered value of taxable energy. This tax is imposed in addition to state and local taxes. A separate reporting form is used for this tax.
Form: TC-61E Municipal Energy Sales and Use Tax Return
Where adopted, the highways tax of .25 percent is applied on all sales subject to sales and use tax. This tax is not levied by communities where public transit tax applies. If imposed, the tax is included in your overall sales tax rate.
A mass transit tax of .25 percent may be adopted by counties, cities or communities that have a public transit system. The public transit tax, if imposed, is included in your overall sales tax rate.
A tax of up to 1.5 percent is imposed at the option of qualifying resort communities on the sale or rental of taxable goods and services within the resort community. A community qualifies if transient room capacity is equal to or greater than 66 percent of the permanent population. The resort communities tax, if imposed, applies to sales subject to sales tax, but is reported on a separate form.
Form: TC-61F, Tourist, Recreation, Cultural & Convention Facilities Return
Form: TC-61FV, Tourist, Recreation, Cultural & Convention Facilities Monthly Return
Qualifying rural counties or cities may adopt a rural health care facilities tax of up to 1 percent. The tax is imposed on the sale of taxable goods and services sold within the adopting jurisdiction, and on the purchase of items subject to the use tax. Rural health care facilities tax, if imposed, is included in your overall sales and use tax rate.
There is a state-wide motor vehicle rental tax of 2.5 percent. In addition, where adopted, this tax is imposed on the following types of transactions:
The tourism taxes, if imposed, are reported on a separate form.
Form: TC-61F or TC-61FV Tourism, Recreation, Cultural, Convention Facilities & Car Rental Quarterly or Monthly Tax Return
Utah counties may impose transient room taxes of up to 3.5 percent on the rent of rooms in hotels, motels, inns, trailer courts, campgrounds, tourist homes, and similar accommodation for stays of less than 30 consecutive days.
In addition to the transient room tax, qualifying municipalities may impose an additional tax of up to 1.5 percent on every rental of public accommodations.
The transient room taxes, if imposed, are reported on a separate form.
Some cities collect the transient room tax required in their jurisdictions. Contact your local city or county government to determine what taxes, if any, are due in your jurisdiction.
Form: TC-61T Transient Room Tax Return
The waste tire recycling fee is used as an incentive to encourage businesses to manufacture products from waste tires. The fee applies to sales of new tires up to and including 24.5 inches. The fee applies to new tires meeting the size requirement and sold for use on owned, rented or leased vehicles, and off-highway motorized vehicles. The tire recycling fee does not apply to recapped or used and resold tires, bicycle tires, or tires held for resale.
Form: TC-61W
State withholding taxes are reported and paid on monthly, quarterly or annually. The return is due on or before the last day of the month following the end of each period. For example, the January filing is due the last day of February.
At the end of each calendar year, an annual reconciliation return with a copy of each W-2 form must be filed. The reconciliation return is due on or before the last day in February. Filing due dates which fall on a weekend or holiday are due the next business day.
Report address changes and business closures by filing a notice of change form.
Forms: TC-96M – Monthly
Withholding Return
TC-96Q – Quarterly Withholding Return
TC-96R – Annual Reconciliation Return
TC-96RC – Annual Withholding
Corrected Reconciliation
TC-96C – Utah Employer's Notice of Change
Publication: Pub 14 – Withholding Tax Guide
Utah Income Tax Withholding Schedules have been designed to parallel the federal withholding schedules found in Circular E, Employer's Tax Guide, published by the Internal Revenue Service. These withholding tables must be used for all wages and salaries earned in Utah. Withholding tables may be ordered from the Tax Commission or may be obtained via the Internet in Publication 14.