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Utah tax changes, July 2017

  • May 17, 2017 | Gail Cole

 Bryce Canyon, Utah. More people are coming.

Tax changes are on the horizon in Utah. Beginning July 1, 2017, there will be several new townships (with new reporting requirements), higher local transient room taxes, higher fuel tax rates, and increased fees and rates for telecommunications and prepaid cell phones. Read on for more details.

New townships

Utah’s population is growing. In 2016, according to the U.S. Census Bureau, Utah was “the nation’s fastest-growing state.” The population is now greater than three million and gaining. People are pouring into the small towns of Salt Lake County, stressing existing roads, filling vacant land, and impacting sales and use tax collections.

New tax jurisdictions

The following new townships will be incorporated into Salt Lake County as of July 1. Although their sales and use tax rates won’t change (all have a rate of 6.85 percent), sales and use tax reporting in these areas will be affected by incorporation. Starting July 1, sales need to be reported in the townships below instead of unincorporated Salt Lake County:

  • Copperton Township
  • Emigration Canyon Township
  • Kearns Township
  • Magna Township
  • White City Township

Additional information is available from the Utah State Tax Commission in Tax Bulletin 8-17.

Higher transient room tax

Cache County will increase the county’s transient room tax beginning July 1. The rate will rise from 3 to 4.25 percent on charges for the use of public accommodations for fewer than 30 consecutive days in any of the following:

  • Bed and breakfast
  • Campground
  • Condominium
  • Hotel or motel
  • Inn
  • Recreational vehicle park
  • Resort home

The 4.25 percent rate is on top of other state and local taxes. Additional information is available in Tax Bulletin 9-17.

Statewide fuel tax rate increases

Rates for compressed natural gas (CNG), liquefied natural gas (LNG), and hydrogen used to power motor vehicles will increase as follows beginning July 1:

  • CNG: 14.5 cents per gallon equivalent
  • LNG: 14.5 cents per diesel gallon equivalent
  • Hydrogen used to power motor vehicles: 14.5 cents per GGE

See Tax Bulletin 7-17 for additional information.

Statewide telecommunications and prepaid cell phone rate increases

The Utah Legislature has mandated (SB 198) the following statewide telecommunications tax and fee changes:

  • A new radio network charge of $0.18 per line per month will be imposed
  • The E-911 emergency telephone charge will increase by to $0.71 per line per month
  • The computer-aided dispatch charge of $0.06 per line per month will be discontinued

As a result of the above changes, the new total E-911 telephone fee will jump from $0.76 to $0.98.

In addition, prepaid cell phone charges will increase from 1.9 to 2.45 percent. See Tax Bulletin 10-17 for more details.

Staying on top of tax rate changes is a challenge, particularly for companies doing business in multiple jurisdictions. Tax automation software simplifies and enhances compliance. Learn more.

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.
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.