Utah - 18% collection allowance for remote sellers

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On March 22, 2013, Utah Governor Gary Herbert signed H.B. 300, which allows remote sellers that voluntarily collect and remit Utah state and local sales and use tax to retain 18% of the tax sellers would otherwise remit to the State Tax Commission. The seller must obtain a Utah sales and use tax license and the seller must not have been licensed prior to January 1, 2014. A seller is ineligible to retain the 18% if the seller is required to collect or remit Utah sales and use tax under Utah law or pursuant to subsequent US Congressional or US Supreme Court authority.

Under current law, Utah generally provides that sellers may retain 1.31% of tax collected (the collection allowance). H.B. 300 provides that sellers voluntarily remitting and retaining 18% of the tax collected may not retain other amounts, such as the 1.31% collection allowance.

The law is effective January 1, 2014.


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