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Remote Sales Tax Legislation Under Consideration in Utah


 Utah steps closer to taxing remote sellers.

A number of remote sales tax bills are currently under consideration in Utah. The two with the most support are SB 182 and HB 235.

SB 182, which would establish affiliate and click-through nexus, has been approved by the Utah Senate and is under consideration in the House.

HB 235, the Remote Transactions Parity Act, has had several readings in the House but still lacks final approval. It, too, seeks to establish affiliate and click-through nexus. This bill also calls for reducing the state sales tax rate as remote sales tax revenue increases.

Fiscal implications

According to SB 182’s fiscal note, remote sales tax could add $867,000 to the General Fund in FY 2017 and $902,000 in FY 2018. Earmarked revenue could also increase by more than $630,000 each year. Local governments could also obtain additional sales tax revenue from the tax: $640,000 in FY 2017 and $666,000 in FY 2018.

Public opinion

According to a poll conducted by UtahPolicy, the people of Utah are divided about online sales tax:

  • 15% strongly support it
  • 25% somewhat support it
  • 22% somewhat oppose it
  • 28% strongly oppose it
  • 10% don’t know

Many Utah lawmakers, on the other hand, have been strongly in favor of remote sales tax for years.

What will it mean for businesses if numerous states adopt remote sales tax legislation? Sales tax software (SaaS) can help businesses manage sales tax in multiple states. Learn how it works.

 

 


Gail Cole
Avalara Author
Gail Cole
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.