Utah – Collection Allowance for Those Who Voluntary Collect Tax

SALT Report 2301 – The Utah State Legislature recently enacted legislation that will allow remote sellers who voluntarily collect sales and use taxes to retain 18% of the taxes that they would otherwise be required to remit to the State Tax Commission.

To qualify for the 18% collection allowance, the seller:

  • Must obtain a Utah sales and use tax license on or after January 1, 2014,
  • May not retain any other collection allowance permitted under Utah law, and
  • Must agree to file a return by electronic means if requested to do so by the Commission

However, sellers may not retain the 18% allowance if the U.S. Supreme Court issues a decision or the U.S. Congress passes a law allowing Utah to require remote sellers to collect and remit tax.

The terms of this Bill are effective January 1, 2014.

For Further Information

Utah State Legislature – House Bill 300, Laws 2013