Utah Tax Nexus
Businesses with nexus in Utah are required to register with the Utah State Tax Commission and to charge, collect and remit the appropriate tax.
Generally, a business has nexus in Utah when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.
Utah nexus for out-of-state sellers
As explained by the Utah State Tax Commission, “Nexus means a business entity has established a direct or representational presence within a state or jurisdiction.” Utah law defines a retailer as “any person regularly engaged in regular solicitation of a consumer market in Utah.”
If your business has ties to businesses in Utah, including affiliates, it may have nexus. An out-of-state seller has nexus in Utah if it sells the same or very similar line of products as a related in-state seller, under the same or a very similar business name — or the place of business of the related seller or one of its in-state employees is used to advertise, promote or assist sales by the out-of-state seller to a buyer in Utah — and any of the following is true:
- The seller has more than 10 percent interest in a related seller
- A related seller has more than 10 percent interest in the seller
- A related seller wholly owns the seller
See the Utah State Tax Commission Publication 37.