Utah – UT Legislative Update: January 2017

Holland and Hart, LLP

USA January 11, 2017

Amazon & Online Sales Tax

“Amazon made a surprise announcement in December that the company would begin voluntarily collecting and remitting sales tax from Utah-based customers. If you’ve made an Amazon purchase in the New Year, you might have noticed a few extra cents attached to the transaction. This has been a long standing hot topic in Utah, as sales tax revenues have been flat in recent years due to the approximately $200 plus million in sales tax that has gone uncollected from Utah consumers every year. Lest you think the internet is a “duty-free” shopping zone, let me point out that if you buy a product from a retailer without a physical presence in Utah the sales tax burden still exists, but the burden of remitting the tax shifts from the retailer to you. It becomes the responsibility of the consumer to remit the tax as use tax on their personal state income tax return each year. If this is news to you and you are thinking of calling Mark Buchi or Steve Young for legal representation, don’t worry you aren’t alone. Less than 1% of Utahns admit to properly remitting use tax each year for online purchases”…

For further information:

http://www.lexology.com/library/detail.aspx?g=a53c0ec1-41eb-41d6-bf53-a5ab9e34179e