Avalara MyLodgeTax > Blog > Lodging Taxes > New Utah state lodging tax goes into effect

New Utah state lodging tax goes into effect

  • Jan 12, 2018 | MyLodgeTax


A new state lodging tax went into effect in Utah on Jan. 1. Previously, only cities and counties levied a tax on short-term accommodations in Utah.

The 0.32 percent tax is expected to generate $5 million a year for the state. The money will be used to fund hospitality education and grants to nonprofit groups working on outdoor recreation infrastructure projects.

Lodging taxes in Utah include state and local sales taxes that range from 5.95 percent to 8.35 percent, as well as local transient room taxes that can range from around 3 percent to 6.25 percent. These taxes are collected from short-term rental guests and remitted to the state.

The online vacation rental platform Airbnb automatically collects lodging taxes for its hosts in Utah. However, short-term rental operators who use other platforms, such as VRBO and HomeAway, are responsible for collecting lodging taxes on their own.

Operators need to be aware of the new tax and start adding it to the amount they collect from guests. Getting it wrong can result in fines, interest, and back taxes. Automated solutions can help hosts get lodging taxes right, no matter what changes come to Utah tax law.

Lodging tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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At Avalara MyLodgeTax, we provide the fastest and easiest way for short-term and vacation rental property owners to comply with their lodging or occupancy tax requirements. We manage your lodging taxes so you don't have to and guarantee your compliance — period. If we make a mistake, we'll fix it at no cost to you. No contracts, no obligation, no worries. Never worry about lodging taxes again. Contact us at MyLodgeTax@Avalara.com.