Utah — Sales & Use Tax

Utah imposes sales and use tax on the purchaser for amounts paid or charged on a defined list of transactions. The tax is imposed on retail sales of tangible personal property made within the state, telecommunications services, sales of gas, electricity, heat, and other fuels for commercial and residential use, sales of prepared food, admissions and user fees, laundry and dry cleaning services, leases or rentals of tangible personal property, and sales of electronically transferred products that would be taxable if transferred in physical form.

Source: Utah Code § 59-12-103(1)

The statewide base sales and use tax rate varies by transaction type. For most retail sales of tangible personal property and taxable services, the combined state and local rate applies. For sales of residential energy (gas, electricity, heat, coal, fuel oil, or other fuels), a reduced state tax rate of 2% applies, plus applicable local taxes.

Source: Utah Code § 59-12-103(2)

Food and food ingredients are subject to a reduced statewide rate of 3.0%, which includes a 1.75% state component, a 1.0% local option component, and a 0.25% county option component.

Source: Utah Tax Commission Combined Sales and Use Tax Rates, effective January 1, 2026

Combined state and local sales tax rates vary by location. The state component plus mandatory local additions create effective rates that range across Utah jurisdictions, with combined rates typically between 6.1% and 8.85% depending on the city or county where the transaction is sourced. Local governments may impose additional sales taxes under various authorizations in Title 59, Chapter 12, including county option taxes, mass transit taxes, highway taxes, and resort community taxes.

Source: Utah Tax Commission Combined Sales and Use Tax Rates, effective January 1, 2026

The Utah State Tax Commission publishes combined rate tables quarterly, which include all applicable state and local components. Retailers and remote sellers should source transactions to the buyer's location using ZIP+4 codes for out-of-state sales delivered into Utah.

Source: Utah Tax Commission Sales & Use Tax Rates page

Review status: Not yet human confirmed. The statute defines the tax base broadly; practitioners should consult Utah Code § 59-12-104 for exemptions and Publication 25 from the Utah Tax Commission for detailed taxability guidance on specific transaction types.

Utah imposes sales and use tax collection obligations on remote sellers that exceed $100,000 in gross revenue from sales of tangible personal property, electronically transferred products, or services for storage, use, or consumption in Utah during the current or previous calendar year. The threshold applies to total gross revenue from all sales delivered into Utah—including taxable, exempt, and resale transactions—not just taxable sales. Neither Utah Code nor Tax Commission rules carve out exempt, nontaxable, or for-resale transactions from the gross revenue calculation for the threshold. Thus, remote sellers must count all sales into Utah when determining whether the $100,000 threshold is met, regardless of whether sales tax was charged on those transactions. This practice aligns with Utah's status as a full member of the Streamlined Sales and Use Tax Agreement, and official Tax Commission guidance parallel to SSUTA confirms this approach.

Prior to July 1, 2025, Utah also imposed a 200-transaction threshold, which was eliminated by S.B. 47 (Laws 2025).

Source: Utah Code § 59-12-107(2)(c) | Utah State Tax Commission remote sellers guidance

Human review status: Not yet human confirmed. Practitioners should check for Tax Commission bulletins or updated rules for any future changes or clarifications.

Any seller making retail sales of tangible personal property or providing taxable services subject to Utah sales and use tax must obtain a sales and use tax license. This requirement applies to sellers with physical presence in Utah (such as a store, office, warehouse, employees, or inventory) and to remote sellers that exceed the $100,000 economic nexus threshold. A seller must register before making its first taxable sale in Utah.

Utah law imposes no fee for the sales and use tax license. Registration is completed online via the Utah State Tax Commission's Taxpayer Access Point (TAP) system. Applicants provide their federal employer identification number, business details, and an estimate of anticipated sales and use tax liability; the Tax Commission assigns an initial filing frequency based on this estimate.

A seller is required to collect sales tax from the date it triggers nexus, not from the date it completes registration. If a gap exists between the nexus date and the registration date, the seller may owe tax for that prior period.

Source: Utah Code § 59-12-106 | Utah Tax Commission Registration Page

The Utah Tax Commission assigns filing frequency based on a seller's annual sales and use tax liability. Sellers with liability of $50,000 or more must file monthly. Sellers with liability between $1,000 and $50,000 may file quarterly. Sellers with liability under $1,000 may file annually. Returns are due by the last day of the month following each filing period. Monthly filers who file and pay timely may claim a 1.31% seller discount on certain sales and use taxes; quarterly and annual filers are not eligible for the discount.

Source: Publication 25, Sales and Use Tax General Information

Utah exempts sales for resale from sales and use tax, but sellers must obtain and retain proper documentation to support the exemption. Under Utah Code § 59-12-107(8), when a wholesaler sells tangible personal property or any other taxable item to a retailer, the wholesaler is not responsible for collecting or paying the tax if the retailer represents that the purchase is for resale. If the retailer does not subsequently resell the property, the retailer—not the wholesaler—becomes solely liable for the tax.

Form TC-721 requirements

To document an exempt resale transaction, current Utah Tax Commission policy requires sellers to obtain a completed Utah Sales Tax Exemption Certificate (Form TC-721) from the purchaser. The form must include the purchaser's business name, address, telephone number, and signature. For the resale exemption specifically, the purchaser must enter their Utah sales tax license number in the designated field and check the "Resale or Re-Lease" box on the form. The certification language on Form TC-721 states: "I certify I am a dealer in tangible personal property or services that is for resale or re-lease. If I use or consume any tangible personal property or services I purchase tax free for resale … I will report and pay the sales tax … directly to the Tax Commission on my next regular sales and use tax return."

Out-of-state purchasers and multijurisdiction certificates

For sales to out-of-state purchasers who do not have nexus with Utah, the seller has two documentation options. First, the seller may obtain a completed Form TC-721 on which the out-of-state purchaser uses its home-state sales tax number in place of a Utah number. Second, as an alternative, the seller may keep on file a letter from the purchaser stating that the purchaser has no nexus with Utah under Utah Code § 59-12-107 and that items purchased are intended for resale. Utah is a full member of the Streamlined Sales and Use Tax Agreement (effective October 1, 2012) and accepts the Streamlined Sales Tax Certificate of Exemption for qualifying resale purchases. Sellers must ensure that out-of-state certificates comply with Utah-specific requirements to avoid audit issues.

Seller reliance and good-faith acceptance

Utah does not require sellers to verify resale certificates with the Tax Commission before accepting them. Tax Commission Ruling 99-029 provides that if an exemption certificate is accepted in good faith, it releases the vendor from liability for uncollected sales tax. The ruling further states that as long as the vendor has an exemption certificate on file, the vendor is not liable for an exemption claimed in error by the purchaser. Utah permits the use of blanket resale certificates: a single certificate on file with a vendor can cover all exempt purchases from that vendor, and a new certificate is not required for each transaction.

Retention and renewal

Sellers must retain resale certificates for at least three years after the exempt sale to satisfy audit documentation requirements. The exemption certificate remains valid until revoked by the vendor or the Tax Commission. Tax Commission Ruling 99-029 recommends, as a routine matter, that sellers obtain new exemption certificates every three years. The ruling also recommends renewing any blanket exemption certificate whenever the seller is aware that a customer's business activities have changed or whenever changes in law are likely to impact that customer's exempt status. In addition to the exemption certificate, sellers must keep a copy of the sales invoice showing the name and identity of the customer.

Source: Utah Code § 59-12-107(8) | Form TC-721, Utah Sales Tax Exemption Certificate | Tax Commission Ruling 99-029 | Tax Commission Ruling 96-020

Utah requires marketplace facilitators to collect and remit sales and use tax on sales they facilitate on behalf of marketplace sellers, effective October 1, 2019. A marketplace facilitator is a person (including an affiliate) that contracts with sellers to facilitate sales of tangible personal property, electronically transferred products, or services through a marketplace the facilitator owns, operates, or controls, and that directly or indirectly performs at least one of the following activities: (a) lists or advertises products for sale on the marketplace; (b) facilitates the sale by transmitting or communicating offers or acceptances between the seller and purchaser; (c) owns, rents, or operates the infrastructure or intellectual property connecting sellers and buyers; (d) collects payment from the purchaser and transmits it to the seller (whether directly or through a third party); (e) provides fulfillment or storage services; (f) sets prices for the seller's products; (g) offers customer service related to orders, returns, or exchanges; or (h) brands the sale as the marketplace's sale.

Exclusions from facilitator definition

A person who only provides payment processing services is not a marketplace facilitator. In addition, as of July 1, 2020, a person who facilitates restaurant sales is not a marketplace facilitator for those transactions.

Collection threshold and effective date

A marketplace facilitator has sales tax collection obligations if, in either the current or previous calendar year, the facilitator makes or facilitates more than $100,000 of sales in Utah. This threshold applies to the facilitator's combined direct sales plus sales facilitated on behalf of marketplace sellers. An out-of-state facilitator without physical presence must begin collecting and remitting Utah sales and use tax no later than the first day of the calendar quarter that is at least 60 days after the day the facilitator meets or exceeds the $100,000 threshold. For example, if a facilitator crosses $100,000 on March 8, 60 days later is May 7 (in Q2); the facilitator must begin collecting no later than the start of the next quarter (July 1).

Deemed seller status and tax base

Utah treats a marketplace facilitator as the seller of all goods and services the facilitator facilitates. The facilitator must collect sales tax on the total purchase price of taxable products sold through the marketplace and on fees the marketplace charges buyers for using the marketplace. Delivery charges, cash discounts, nonreimbursed manufacturer coupons, and fees the marketplace charges to sellers (such as listing, referral, or payment processing fees paid by sellers) are excluded from the tax base.

Marketplace seller obligations

Marketplace sellers are not required to collect or remit sales and use tax on sales facilitated by a marketplace facilitator. A marketplace seller does not need a Utah sales tax license for facilitated sales unless the seller also has independent Utah nexus (under Utah Code § 59-12-107) and makes sales outside the marketplace. If a marketplace seller holds a Utah sales tax license, the seller must file returns but does not report or remit tax on marketplace-facilitated sales. Marketplace sellers are not liable for a facilitator's failure to collect or any underpayment of tax on facilitated sales, and sellers cannot opt out of having the facilitator collect tax on their behalf.

Facilitator recordkeeping and liability relief

Marketplace facilitators must maintain books and records that separately show the facilitator's own direct sales and the sales the facilitator makes on behalf of marketplace sellers. Facilitators are not liable for failing to collect tax if they demonstrate that: (1) the facilitator made or facilitated the sale through its marketplace; (2) the failure to collect was due to a good-faith error other than an error in sourcing; and (3) for sales made or facilitated in 2019 or 2020, the facilitator's error rate does not exceed 7%; for sales in 2021, the error rate does not exceed 5%; and for sales in 2022, the error rate does not exceed 3%. The error rate is calculated as a percentage of total sales and use taxes due on all sales the facilitator made or facilitated in Utah during the calendar year.

Scope of taxes collected

In addition to sales and use tax, marketplace facilitators must collect all sales-related taxes imposed under Title 59, Chapter 12, including transient room tax, tourism taxes, motor vehicle rental tax, and municipal telecommunications license taxes, to the extent the facilitator facilitates transactions subject to those taxes.

Source: Utah Code § 59-12-107.6 | Publication 71, Sales Tax Information for Marketplace Sellers and Marketplace Facilitators | Utah Tax Commission Marketplace Facilitators page

Utah sources sales tax for tangible personal property, certain services, and electronically delivered products using a hierarchy established in Utah Code § 59-12-211 (in effect through at least 2026, no pending changes found as of June 2026):

1. Origin vs. Destination Sourcing

• Origin-based sourcing applies if the purchaser receives the item at the seller’s business location. The local sales tax rate is based on the seller’s site.
• Destination-based sourcing applies in all other cases: when goods are shipped, delivered, or the purchaser does not take receipt at the seller’s business. The rate is based on where the purchaser takes delivery.
• If the exact location of receipt cannot be established, Utah applies the following fallback hierarchy (mirroring § 59-12-211(4)(a)):

1. The purchaser’s address maintained in the seller’s business records.
2. The address obtained at the time of sale, including from the purchaser’s payment/billing instrument.
3. The seller’s ship-from address, if neither address above is available.

Source: Utah Code § 59-12-211

2. Optional Order Receipt Sourcing (effective May 3, 2023) If both the order and the customer’s receipt of the property occur at a Utah location, and the receipt location would be used under § 59-12-211, the seller may elect to source the transaction to the Utah location where the order was received—provided the seller’s records support this. Source: Utah Code § 59-12-212

3. Delivery Charges Separately stated delivery, shipping, handling, postage, crating, and packing charges are excluded from the taxable sales price. If these amounts are included in the item’s price and not listed separately on the invoice, the entire amount is taxable. Source: Utah Code § 59-12-102

4. Drop Shipments and Agency Guidance For drop shipment scenarios and other mixed transactions (such as services bundled with taxable property), the Utah State Tax Commission provides further interpretation in Publication 25, which—while not controlling authority—clarifies that most drop-shipped sales delivered in Utah are sourced to the ultimate destination. The guidance includes a sourcing chart for complicated examples. When statutes are silent or ambiguous, practitioners should consult Publication 25 but always default to code when in conflict. Source: Utah State Tax Commission Pub 25, Sourcing of Sales

5. Gifts Shipped to Utah Recipients For gifts delivered to donees in Utah, the transaction is sourced according to the general hierarchy: destination-based if delivered to the recipient’s address, origin-based if picked up at the seller’s business location, with the fallback address sequence if recipient location is unclear. Source: Utah Code § 59-12-211

Review status: Section is current as of June 2026 and uses statutory language effective through at least this date. Practitioners should check for later revisions if using after mid-2026.

Utah statutes enumerate a wide range of specific exemptions from sales and use tax, beyond the general sale-for-resale exclusion. These exemptions are listed primarily in Utah Code § 59-12-104, effective as of June 2026, and the list changes only by legislative amendment. Key practitioners’ categories are summarized below—each category is tied to the statutory standard and the required documentation is specified only where statute or Tax Commission rulings make it explicit.

1. Manufacturing Equipment

• Utah Code § 59-12-104(13), (14) exempts sales or leases of machinery and equipment primarily used (meaning over 50% use threshold per code) in new or expanding manufacturing or mining facilities to produce tangible personal property for resale. Exemption includes normal operating repair or replacement parts and qualifying research equipment. Documentation: The code requires "sufficient records" to substantiate claims; sellers routinely obtain a completed Utah Sales Tax Exemption Certificate (Form TC-721), but the statute does not mandate a particular form.

2. Agricultural Inputs and Farm Equipment

• § 59-12-104(20)-(26) provide exemptions for seeds, feed, plants, fertilizers, sprays, insecticides, machinery, and irrigation equipment used or consumed primarily in commercial farming operations. Statutory eligibility turns on primary use for commercial farming. The Tax Commission (Ruling 99-032) requires producers to provide sellers documentation of commercial status (such as IRS Schedule F) and a completed exemption certificate (Form TC-721).

3. Prescription Drugs, Durable Medical Equipment, and Health Products

• Utah Code § 59-12-104(44)-(47) exempts prescription drugs; insulin, syringes, and mobility-enhancing equipment; durable medical equipment prescribed by a physician; and prosthetic devices for human use. Proof: Prescription (for drugs/devices requiring one) or record of qualifying purchase; exemption certificate only on non-prescription durable goods if claimed as exempt.

4. Sales to Exempt Organizations

• Section § 59-12-104(8), (9), (21) grants exemption to purchases made directly by Utah state and local governments, public schools, or IRS-qualified charitable, religious, and educational nonprofits that hold a Utah State Tax Commission-exempt status number. Documentation required: Valid exemption certificate referencing the organization’s exemption number. See Tax Commission Ruling 02-021 for details on documentation and eligibility.

5. Other Major Exemptions

• Isolated or occasional sales by persons not regularly engaged in business (§ 59-12-104(7)).
• Sales of motor fuels, aviation fuels, and certain energy sources (§ 59-12-104(2), (47)).
• Sales of newspapers or newspapers subscriptions (§ 59-12-104(11)).
• Sales of unprepared food to farmers for livestock or poultry feed (§ 59-12-104(25)).
• Sales of hay and certain produce, stored in the open pending sale during the harvest season (§ 59-12-104(23)).

Each statutory exemption is subject to specific qualifications. Practitioners should always confirm the relevant subsection to verify scope and current eligibility. Where statute is silent on formality, best practice is to secure and retain an exemption certificate and any supporting documentation called for by the Tax Commission.

Source: Utah Code § 59-12-104 | Utah Code § 59-12-104.1 | Tax Commission Ruling 99-032 | Tax Commission Ruling 02-021

Review status: Not yet human confirmed. Statutory language and ruling references current as of June 2026.

Utah imposes specific recordkeeping requirements and sets the statute of limitations for sales and use tax assessments, with extensions in cases involving fraud, non-filing, or agreement by the taxpayer and the Tax Commission.

Statute of Limitations for Assessments Utah Code § 59-1-1410(1)(a) provides that the State Tax Commission must assess sales and use tax within three years after the date the return is filed. If a return is filed late, the statute runs from the date of filing. However, under § 59-1-1410(3), there is no statute of limitations when no return is filed or the taxpayer files a false or fraudulent return. Further, the assessment period may be extended by a written agreement between the taxpayer and the Commission, provided that agreement is made before the expiration of the original statute of limitations (§ 59-1-1410(4)).

Recordkeeping and Retention Requirements Utah Code § 59-12-111 and Utah Admin. Code R865-19S-22 require every retailer, lessor, or other person doing business in the state to keep accurate records of all sales and purchases, including gross receipts (whether taxable or not), claimed deductions, and supporting documentation. These records must be preserved for at least three years. If a business ceases operating, records must be kept for three years following cessation unless the Tax Commission provides written relief (see Utah Admin. Code R865-19S-25).

Extension and Exceptions If the seller or taxpayer fails to file a required return or files a false or fraudulent return with intent to evade tax, there is no time limit for the Commission to assess tax liability (§ 59-1-1410(3)). By mutual written consent, both the taxpayer and Tax Commission may agree to extend the statute of limitations for assessment beyond three years (§ 59-1-1410(4)).

Summary Table

| Issue | Authority | Rule | |-------------------------------|---------------------------------------|-------------------------------------------| | Assessment limitations | Utah Code § 59-1-1410 | 3 years from return filing; unlimited if no return or fraud; may be extended by written agreement | | Record retention | Utah Admin. Code R865-19S-22; § 59-12-111 | 3 years minimum, including after business cessation |

Source: Utah Code § 59-1-1410 | Utah Code § 59-12-111 | Utah Admin. Code R865-19S-22 | Utah Admin. Code R865-19S-25

Review Status: Not yet human confirmed.

Utah exempts a broad range of transactions from sales and use tax, with exemptions primarily codified in Utah Code § 59-12-104 and detailed in Utah State Tax Commission guidance. Practitioners should tie each claim to specific statutory subsections or authoritative publications to avoid audit exposure. This section summarizes the major classes, documentation requirements, and practitioner edge-cases relevant in 2026.

1. Entity-Based Exemptions

• Government entities: Sales to Utah state and local governments and public schools are exempt when the government entity is the direct purchaser and holds title to the property at delivery. See § 59-12-104(8), (9); confirm agency status per Pub. 25.
• Nonprofits (charitable/religious/educational): Purchases by 501(c)(3) organizations are exempt under § 59-12-104(26). For sales of $1,000 or more, exemption applies at point of sale if the organization presents a Tax Commission exemption number. For less than $1,000, the organization must pay tax at purchase and later file for a refund (Pub. 25 § "Charitable, Religious or Educational Orgs."; see also Ruling 02-021 on exemption certificate process).

2. Use- and Product-Based Exemptions

• Resale: Property and taxable services purchased for resale are exempt if properly documented (resale certificate TC-721 or Streamlined Cert.), § 59-12-104(25).
• Manufacturing equipment, parts & materials: Machinery or equipment with a useful life of at least three years, used primarily (>50%) and directly in new or replacement manufacturing or processing, is exempt under §§ 59-12-104(13)-(14); interpreted in Admin. Code R865-19S-85. Documentation: detailed books showing qualifying use; best practice is to collect Form TC-721 with box 3 marked, per Pub. 25.
• Agricultural inputs: Seeds, feed, fertilizers, sprays, machinery, and irrigation equipment used primarily in commercial farming are exempt (§ 59-12-104(20)-(26))—requires operator’s attestation (Pub. 25, "Agricultural producers"). Tax does apply to items not used directly in production (e.g., office supplies or vehicles used off-farm).
• Isolated or occasional sales: Exemption applies to "one-off" sales outside the seller’s normal trade or business (§ 59-12-104(7)).

3. Medical-Related Exemptions

• Prescription drugs and medical supplies: Sales of prescription drugs for human use (§ 59-12-104(44)), insulin (§ 59-12-104(45)), and prosthetic devices prescribed by a physician (§ 59-12-104(46)-(47)) are exempt. Institutional bulk purchases covered if ordered for eligible patients (Pub. 64, "Medical & Hospital Exemptions").

4. Technology—Software and Digital Goods

• Prewritten/canned software—delivered on media, downloaded, or accessed via SaaS/cloud—is taxable tangible personal property (§ 59-12-102(109), Pub. 64 "Taxability of Prewritten Software") regardless of delivery method. Utah treats SaaS and other remotely accessed software as taxable unless the software is custom.
• Custom software—defined as software originally designed and developed for one purchaser—is not taxable when separately stated and billed (§ 59-12-104(54), Pub. 64 "Custom Software"). If a license includes both prewritten and custom elements, only the custom portion may be exempt when separately itemized (Pub. 64 examples).

Nuances, Documentation, and Audit Focus Points

• Manufacturing and agricultural exemptions: The most-contested issue is primary/direct use (see R865-19S-85 for “primarily used” and “useful life” tests).
• Nonprofit purchases: Exemption only applies to purchases for the qualifying organization's exempt mission—not personal/employee use (§ 59-12-104(26); Pub. 25).
• Certificates and records: Practitioners should secure and retain exemption certificates and related documentation for at least three years (§ 59-12-107(9), Pub. 25; best practice: renewal every three years or with business change).

Summary Table (2026) | Category | Exempt? | Source/Authority | Key Conditions/Notes | |----------------------------------------|---------|--------------------------------------------------------------|-------------------------------------------------------| | Sales to government entities | Yes | § 59-12-104(8), (9); Pub. 25 | Direct purchase/title; payment by entity | | Sales to nonprofits (501(c)(3)) | Yes | § 59-12-104(26); Pub. 25; Ruling 02-021 | Exemption # required; < $1,000 = refund process | | Sales for resale | Yes | § 59-12-104(25); Pub. 25 | Proper certificate (TC-721 or Streamlined) | | Machinery/equipment (manufacturing) | Yes | §§ 59-12-104(13)-(14); R865-19S-85; Pub. 25 | >50% direct use; useful life ≥ 3 yrs; records needed | | Agricultural inputs & equip. | Yes | §§ 59-12-104(20)-(26); Pub. 25 | Must be primarily used in agriculture; attestation | | Isolated/casual sales | Yes | § 59-12-104(7) | Not a “regular” seller | | Prescription drugs/equip. | Yes | §§ 59-12-104(44)-(47); Pub. 64 | For human use; prescription/institutional purchase | | Prewritten software/SaaS | No | § 59-12-102(109); Pub. 64 | Taxable regardless of delivery method | | Custom software | Yes | § 59-12-104(54); Pub. 64 | Must be “custom,” separately stated |

Source: Utah Code § 59-12-104 | Utah Admin. Code R865-19S-85 | Utah State Tax Commission Publication 25 (2026) | Utah State Tax Commission Publication 64 (2026)

Review status: Not yet human confirmed. All statutory citations and publication references are as of June 17, 2026. Always review the precise subsection and Tax Commission guidance for current requirements in edge cases.

Utah imposes penalties for late registration, late filing, and underpayment of sales and use tax, as set forth in Utah Code § 59-1-401. Failure to file a sales and use tax return by the due date generally results in a penalty of the greater of $20 or 10% of the unpaid tax. Similarly, if tax due is paid late, a separate penalty of the greater of $20 or 10% of the unpaid tax applies. Both late filing and late payment penalties can be assessed on the same return if both occur. If a return remains unfiled more than 90 days after the due date (or after a Demand Notice), the penalty increases to 25% of the unpaid tax.

Interest accrues on all underpayments and delinquencies from the original due date until paid, at the statutory rate set by the Utah State Tax Commission for each year pursuant to Utah Code § 59-1-402. The annual rate is published in Utah State Tax Commission Publication 58; the rate for 2026 should be confirmed using the current publication or the Commission's website if not expressly stated in the guides linked below.

Taxpayers may request waiver of penalties or interest due to reasonable cause, under Utah Code § 59-1-401(14) and as described in Utah State Tax Commission Publication 17. Requests must be in writing (typically via Form TC-899 or similar), and must provide a clear factual basis for why reasonable cause existed and good faith efforts were made to comply. Decisions are at the Commission's discretion and supported by precedent in administrative determinations.

Utah also offers a voluntary disclosure program (VDA) for sellers or other taxpayers with prior Utah nexus and unreported sales and use tax liability. This program, explained in Publication 04, allows eligible applicants to resolve prior liability with an offer of limited lookback (often three years, but as specified in the agreement) and waiver of penalties. Applicants must not have already been contacted by the Commission about the liability. The process requires submission of the VDA application, negotiation and signature of an agreement, full disclosure, timely filing of required returns, and payment of tax and applicable interest within deadlines stated by the Commission. Failure to meet the terms, or misrepresentation, may void the agreement and reinstate ordinary statutory penalties and lookback periods. Consult Publication 04 for eligibility, required documentation, and detailed steps.

Source: Utah Code § 59-1-401 | Utah State Tax Commission Publication 58 | Utah Code § 59-1-402 | Utah State Tax Commission Publication 17 | Utah State Tax Commission Publication 04

Review status: Not yet human confirmed. This section reflects statutory law and official publications as of June 17, 2026.