Utah – Business Activity and Nexus

SALT Report 1555 – The Utah State Tax Commission has updated their publication regarding business activity and nexus. The publication redefines the term nexus and provides guidelines that will help businesses determine whether their activities create nexus within the state.
Nexus now includes any business that has a direct or representational presence within the state or a jurisdiction. Businesses have met the minimum requirement for establishing nexus and will be required to collect and pay sales tax if they:
  • Have or use an office, distribution house, sales house, warehouse, service enterprise or other place of business in the state
  • Maintain a stock of goods in Utah
  • Regularly solicit orders (whether or not those orders are accepted in Utah), unless the activity in Utah is only advertising or solicitation by direct mail, email, the Internet, or telephone
  • Regularly deliver property in Utah other than by common carrier or U.S. mail, or
  • Regularly engage in any activity related to the leasing or servicing of property located in Utah
Additionally, effective July 1, 2012 a seller will have nexus if:
  • The seller has more than 10% interest in a related seller, or
  • A related seller has more than 10% interest in the seller, or
  • A related seller wholly owns the seller, and
  • The seller sells the same or very similar line of products as the related seller under the same or a very similar business name, or
  • The place of business of the related seller or one of its in-state employees is used to advertise, promote or assist sales by the seller to a buyer