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Utah Expands Sales Tax Seller Definition To Include Affiliates


Utah House Bill 384 redefines and clarifies businesses that qualify as sellers for the sake of sales tax collection responsibilities in the state of Utah. Governor Gary R. Herbert signed H.B. 384 into law March 22, 2012 with an effective date of July 1, 2012.

Sellers that are considered doing business in-state now include:

  • Those holding substantial “…direct or indirect ownership through a parent, subsidiary or affiliate”;
  • Those selling the same or a substantially similar line of products as the related seller; and doing so under the same or a substantially similar business name;
  • Those with a place of business or an in-state employee that is used to advertise, promote or facilitate sales by the seller to a purchaser;
  • Businesses having or using an office, distribution house, sales house, warehouse, service enterprise or place of business in-state;
  • Business delivering tangible personal property, a service or a product transferred electronically that is sold by a seller to a purchaser in-state.

In addition to these stipulations, the Utah Legislature provided that if the “…Supreme Court issues a decision authorizing a state to require …sales or use tax [collection],” then collection duties will be imposed on all sellers not currently required to do so under the modifications noted in the bill.

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”