Utah Bill Would Change Sales Tax on Vehicles
- Feb 13, 2015 | Gail Cole
Legislation currently under consideration in Utah seeks to amend the location of a sale of certain motor vehicles for sales and use tax purposes.
Under current law, the location of a sale of tangible personal property in Utah is the business location of the dealer—where the item was sold. The rate is based on that location and a portion of the sales tax revenue goes to that local tax authority.
If HB 181 is approved, the sales and use tax rate on retail sales of certain motor vehicles would be based on “the location of the street address at which the motor vehicle is registered.” A portion of the sales tax on such transactions would go to that local tax authority.
The change would take effect on January 1, 2016, and apply to sales of the following:
- Manufactured homes
- Mobile homes
- Modular homes
- Motor vehicles
Representative Ken Ivory (R) introduced the measure in January 2015. As of this writing, it is not being considered by the House Revenue and Taxation Committee.
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