Utah: Sales Tax Exemption for Electronic Financial Payment Services

Apr 15, 2013 | Gail Cole

Utah allows sales tax exemption for equipment and machinery used in electronic financial payment services.

Utah Governor Gary Herbert (R) signed SB 171 into law on April 1, 2013, thereby securing a "sales and use tax exemption for the purchase or lease of machinery and equipment by qualified electronic financial payment services."

The exemption applies to machinery and equipment "used in the operation of the electronic financial payment services." Such equipment must have "an economic life of three or more years."

Utah became a member of the Streamlined Sales and Use Tax Agreement (SSUTA) in 2002. As such, it is committed to simplifying and modernizing its state sales and use tax laws. SB 171 references the SSUTA.

With the exception of "actions affecting Section 59-12-102," the new law takes effect July 1, 2013. Actions affecting Section 59-12-102 take effect July 1, 2014.

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Sales 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.

Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.