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Every sales tax license holder files Sales and Use Tax Returns (TC-62S for businesses with a single location or TC-62M for businesses with more than one location or non-fixed locations). Other forms may be required depending on the business type and structure.
If a seller is liable for sales-related taxes (such as transient room, tourism, waste tire, etc.), a separate sales-related return is filed for each period. For example, form TC-62T, Transient Room Tax Return, and form TC-62W, Waste Tire Recycling Fee Return, are not filed by all businesses.
A sales and use tax return is required for each filing period (either monthly, quarterly or annually). Each return may include schedules that allow multiple outlet sales to be reported on the return. If a seller is liable for sales-related taxes, such as transient room, tourism, waste tire, etc., a separate return must be filed for each period for each separate type of tax or fee.
Returns are due on or before the last day of the month following each filing period, unless the due date falls on a weekend or holiday. In that case, the return will be due the next business day. Admin. Rule R865-19S-12.
After a sales tax license has been issued, the Tax Commission will mail a personalized return to each seller, unless the seller has elected to not receive paper returns. If a seller does not receive a paper return, it is the seller’s responsibility to obtain blank forms, file all appropriate return forms, and remit taxes by the due date. Returns must be filed even if no tax liability is due for a particular filing period.
Line-by-line instructions for paper returns are available on each TC-62 form.
Sellers can file sales and use tax returns and schedules online from the Tax Commission's website. Go to home page at tax.utah.gov and click the Online Tax Services link. To access the system, use the PIN issued by the Tax Commission on pre-printed TC-61 sales and use tax return forms.
There is no charge to file online. All entries are computed and users receive a confirmation number for record keeping purposes.
The Tax Commission determines the filing frequency for sales and use tax returns based on the following criteria:
Filing Frequency Based on Annual Tax Liability |
||
Annual Tax Liability |
Filing Status |
Due |
| $1,000 or less | Annual filer | January 31 |
| $1,001 to $49,999 | Quarterly filer | April 30, July 31, October 31, January 31 |
| $50,000 to $95,999 | Monthly filer | Last day of month following end of period. For example, 1/31 for December, 2/28 for January, etc. |
| $96,000 or more | Monthly filer with mandatory EFT payments | |
| If the due date falls on a Saturday, Sunday, or a legal holiday, the return due date becomes the next business day. | ||
Sellers may remit sales and use taxes by mail via check or money order, in person at any Tax Commission office, or online.
Whether periodic sales tax returns are filed electronically or on paper, sales tax can be electronically remitted to the Tax Commission using PaymentExpress.
PaymentExpress will accept payment for most tax types, including sales tax. Payment can be made by credit card (American Express, Discover, or MasterCard) or electronic check (direct debit to a checking or savings account).
A convenience fee is applied to PaymentExpress transactions to cover costs associated with the electronic payment service. The convenience fee is $1 for an electronic check payment. For credit card payments, convenience fees vary depending on the amount paid. For example:
$1-50 $51-100 $101-150 $151-200 $201-250 $251-300 $301-400 Etc.
A complete convenience fee table is available on the PaymentExpress website in the Frequently Asked Questions.
PaymentExpress is only for the payment of taxes and other amounts due. Be sure to file any tax return separately.
Electronic Funds Transfer (EFT)
If the seller’s annual sales tax liability is $96,000 or more, payment must be made by Electronic Funds Transfer (EFT). EFT payments can be completed up to 30 days before the tax filing due date and withdrawn on the payment date selected by the seller. The payment must be completed no later than 7:00 p.m. Mountain Time on the due date, with a settlement date no later than the next business day. EFT capabilities must be set up before making a payment. Contact the Tax Commission for assistance.
Please Note: Filers required to make EFT payments should not use PaymentExpress for current returns. Payments made online by credit card or electronic check do not meet EFT filing requirements. If sellers required to make EFT payments use PaymentExpress for current returns, they will lose their seller discount. However, EFT filers may pay past-due liabilities online using PaymentExpress. Tax Bulletin 10-92: Monthly payment of sales tax and electric funds transfer.
Persons filing monthly sales tax returns are entitled to a seller discount equal to 1.31 percent of the combined sales tax. Persons filing monthly tourism tax returns are entitled to a seller discount equal to 1 percent of the tourism short-term leasing tax adopted by the county. Quarterly and annual filers are not eligible for the seller discount.
Items consumed by the seller are subject to use tax on the amount of the seller’s cost of the items, not the selling price. Items consumed by the seller include:
When making purchases for store use from local businesses, tax should be paid at the time of purchase. For example, office supplies and equipment, such as labels for internal accounting, cash register tapes, returnable containers, and furniture are taxable at the point of sale.
The seller may purchase tax-free grocery bags, sacks, and other non-returnable packaging material that go out the door with the customer.
No tax is due on items discarded because of spoilage, broken packaging, and similar incidents, because they are not considered as consumed by the seller.
A seller is entitled to a sales tax adjustment for returned checks and bad debts. Nontaxable amounts, such as cash back to the customer and exempt charges, must be deducted from the total amount of the returned check or bad debt amount to arrive at the net write-off amount. The amount of the adjustment to be claimed on the sales tax return is determined by dividing the net write-off amount by one plus the tax rate adopted in the community at the time of sale.
For example, if the net write-off amount is $100 and the tax rate is 6.5 percent, the amount of the adjustment claimed on the return is determined by dividing $100 by 1.065, resulting in a claim of $93.90.
If an item is repossessed, a credit may not be taken (with the exception of motor vehicle repossessions). Tax Bulletin 11-91: Bad debts & repossessions.
The penalty for failure to file a tax due return by the due date is:
Number of Days Late |
Greater of: |
1-5 |
$20 or 2 percent of the unpaid tax |
6-15 |
$20 or 5 percent of the unpaid tax |
16 or more |
$20 or 10 percent of the unpaid tax |
Failure to file a tax return includes filing a tax return that does not contain information necessary for the Tax Commission to make a correct distribution of tax revenues to counties, cities, and towns. In addition, if a tax balance remains unpaid 90 days after the due date, a second penalty will be added for failure to pay timely.
The penalty for failure to pay the full amount of tax due as reported on a timely filed return, or within 30 days of a notice of deficiency, is:
Number of Days Late |
Greater of: |
1-5 |
$20 or 2 percent of the unpaid tax |
6-15 |
$20 or 5 percent of the unpaid tax |
16 or more |
$20 or 10 percent of the unpaid tax |
Unpaid tax includes tax remitted to the Tax Commission that is not accompanied by a tax return, or accompanied by a tax return that does not contain information necessary for the Tax Commission to make a correct distribution of tax revenues.
In addition, monthly returns filed late or underpaid returns will result in the loss of seller discount. For more information, see Publication 58, Utah Interest and Penalties.
Purchasers or lessees who claim sales and use tax exemptions for qualified purchases or leases of manufacturing machinery, equipment, normal operating repair or replacement parts or semiconductor fabricating, processing, research or development materials are required to report the amount of such purchases or leases on the appropriate line of their periodic sales and use tax returns. Failure to comply with these reporting requirements may subject the responsible party to a penalty of the lesser of $1,000 or 10 percent of the sales tax that would have been imposed if the exemption had not applied.
Interest is assessed from the filing due date until the tax liability is paid in full. The interest rate on the unpaid balance is subject to change on January 1 of each year. Interest is 7 percent for calendar year 2008. See Admin. Rule R861-1A-18. For additional information, please refer to Publication 58, Utah Interest and Penalties.
A taxpayer can file a claim for a credit or a refund of an overpayment within three years of paying the tax, even though the taxpayer did not object to a notice of deficiency or a notice of assessment by the Tax Commission. If the Tax Commission denies this claim for credit or refund, the taxpayer may file a petition for agency action. A taxpayer may not, however, file a claim for a credit or a refund on a tax deficiency that has been previously adjudicated.
There are three methods to file a claim for refund or credit:
1. Take an adjustment on the current sales tax return;
2. File an amended sales tax return for the period in question; or
3. Mail a refund request letter to the Tax Commission.
The refund request must include the statutory basis for a refund and supporting documentation such as copies of invoices that show tax collected and copies of checks that verify payment of the invoice. Additional documentation or verification may be required to process the refund request.
Admin. Rule R865-19S-22 requires every retailer, lessor, or person doing business in Utah to keep complete records used to determine the amount of sales and use tax for which they are liable. Records must be retained for three years from the filing date of the tax returns. All records shall be open to the Tax Commission or its authorized agents for examination at any time.
These records shall:
Please note: Any automated data processing tax accounting system must be capable of reproducing visible and legible records for tax liability verification. General ledgers with source references should coincide with financial reports for each tax period. All supporting documentation should be easily accessible. Additional record keeping requirements can be found in Admin. Rule R861-1A-35.