Utah Use Tax
Use tax is a tax on goods and taxable services purchased for use, storage or other consumption in Utah during the taxable year and applies only if sales tax was not paid at the time of purchase. If you purchased an item from an out-of-state seller (including Internet, catalog, radio and TV purchases) and the seller did not collect sales tax on that purchase, you must pay the use tax directly to the Tax Commission. If you have a Utah sales tax license/account, include the use tax on your sales tax return. If you do not have a Utah sales tax license/ account, report the use tax on line 31 of TC-40.
You may take a credit for sales or use tax paid to another state (but not a foreign country). If the other state’s tax rate is lower than Utah’s, you must pay the difference. If the other state’s tax rate is more than Utah’s, no credit or refund is given. If sales tax was paid to more than one state, complete the Use Tax Worksheet below for each state. Add lines 8 on all worksheets, and enter the total on line 31.
Sales and use tax rates vary throughout Utah. Use the Use Tax Rate Chart below to get the rate for the location where the merchandise was delivered, stored, used, or consumed. Use the county tax rate if the city is not listed.
The tax on grocery food is 3 percent. Grocery food is food sold for ingestion or chewing by humans and consumed for taste or nutritional value. Grocery food does not include alcoholic beverages or tobacco. See Pub 25, Sales and Use Tax, for more information.
You may use the following worksheet to calculate your Utah use tax.
|Worksheet for Calculating Utah Use Tax|
|1.||Amount of purchases (except grocery food) subject to use tax||$|
|2.||Use tax rate (decimal from chart)||X|
|3.||Multiply line 1 by decimal on line 2||$|
|4.||Amount of grocery food purchases subject to use tax||$|
|5.||Multiply line 4 by 3% (.03)||$|
|6.||Add line 3 and line 5||$|
|7.||Credit for sales tax paid to another state on use tax purchases||$|
|8.||Utah use tax (subtract line 7 from line 6). If less than zero, enter “0”||$|