Use tax is a tax on goods and taxable services purchased for use, storage, or other consumption in Utah during the taxable year, and applies only if sales tax was not paid at the time of purchase. If you purchased an item from an out-of-state seller, including internet, catalog, radio, and TV purchases, and the seller did not collect sales tax on that purchase, you must pay the use tax directly to the Tax Commission. If you have a Utah sales tax license/account, include the use tax on your sales tax return. If you do not have a Utah sales tax license/account, report the use tax on your income tax return.
The tax rate for use tax depends on the city where you received the goods or taxable service. Multiply the purchase price of the goods or taxable service by the tax rate for the appropriate city as provided in the table below. If a city is not listed, use the tax rate for the county where the city is located.
What is Taxable?
You must pay use tax on all taxable items bought for storage, use or consumption in Utah during the tax year if sales tax was not paid to the seller at the time of purchase. You do not have to pay use tax if you paid Utah sales tax at the time of purchase. This includes Internet and catalog purchases.
Use tax must be paid on the purchase or rental of products (tangible personal property) as well as labor and parts used to repair or renovate products. Some examples are:
- Magazine subscriptions and newsletters
- Internet and mail-order products
- Clothing, toys, books, etc.
- Grocery food (see below)
If you paid sales tax to another state (but not a foreign country) on a purchase, you may claim a credit for the tax paid the other state in the calculation of the Utah tax you owe.
- If the other states’ tax rate is lower than Utah‘s, you must pay the difference.
- If the other states’ tax rate is more than Utah’s, no credit or refund is given.
- If you paid sales tax to more than one state, complete the worksheet below for each state.
Please see http://incometax.utah.gov/topics/use-tax for applicate tax rates.