Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since January 1, 2020, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R865. Tax Commission, Auditing.
Rule R865-21U. Use Tax.
As in effect on January 1, 2020
Table of Contents
- R865-21U-1. Nature of Use Tax Pursuant to Utah Code Ann. Section 59-12-103.
- R865-21U-2. Rules Common to Both Sales and Use Taxes Pursuant to Utah Code Ann. Section 59-12-118.
- R865-21U-6. Liability of Purchasers for Payment of Tax Pursuant to Utah Code Ann. Section 59-12-107.
- R865-21U-16. Property Sold or Used In Interstate Commerce Pursuant to Utah Code Ann. Section 59-12-107.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
A. The tax imposed on amounts paid or charged for transactions under Title 59, Chapter 12 is a:
1. sales tax, if the tax is collected and remitted by a seller on the seller's in-state or out-of-state sales; or
2. use tax, if the tax is remitted by a purchaser.
B. The two taxes are compensating taxes, one supplementing the other, but both cannot be applicable to the same transaction. The rate of tax is the same.
A. The use tax is a complement to the sales tax and the rules promulgated are common to both taxes.
R865-21U-6. Liability of Purchasers for Payment of Tax Pursuant to Utah Code Ann. Section 59-12-107.
(1) For purposes of this section:
(a) "Income tax return" means a tax return filed under:
(i) Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
(ii) Title 59, Chapter 10, Individual Income Tax Act, except for Title 59, Chapter 10, Part 4.
(b) "Sales tax license" means a license issued under Title 59, Chapter 12, Sales and Use Tax Act.
(2) A purchaser of an item that is subject to sales and use tax must account for the tax liability by paying the tax:
(a) to the seller from whom the item was purchased if the seller has a sales tax license; or
(b) directly to the commission if the seller from whom the item was purchased does not collect the sales tax from the purchaser.
(3) A purchaser that is subject to Subsection (2)(b) shall:
(a) if the purchaser has a sales tax license pay the tax on the purchaser's sales and use tax return; or
(b) if the purchaser does not have a sales tax license, pay the tax on the purchaser's income tax return.
(4)(a) A purchaser paying the tax to the commission under Subsection (3)(b) shall compute the tax using the rates provided in the income tax instructions for the address of the purchaser as shown on the income tax return.
(b) If a purchaser is not required to file an income tax return, the purchaser shall:
(i) report and pay the tax on the income tax return the purchaser would otherwise be required to file; and
(ii) include with the return a statement stating that no income tax is due and that the return is submitted for payment of use tax only.
R865-21U-16. Property Sold or Used In Interstate Commerce Pursuant to Utah Code Ann. Section 59-12-107.
A. The fact that tangible personal property is purchased in interstate or foreign commerce does not exempt the property from the tax if the property is stored, used, or otherwise consumed within this state after the shipment in interstate or foreign commerce has ended.
B. The fact that tangible personal property is used in this state in interstate or foreign commerce following its storage in this state does not exempt the storage of the property from the tax. The fact that tangible personal property is used in this state in interstate or foreign commerce does not exempt the use of the property from the tax.
taxation, use tax
August 27, 2012
November 10, 2016
59-12-103; 59-12-107; 59-12-104; 59-12-118
For questions regarding the content or application of rules under Title R865, please contact the promulgating agency (Tax Commission, Auditing). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.