Utah Legislation Amended for SST Agreement Conformity

Utah legislation, H.B. 50, Laws 2010, has amended the Sales and Use Tax Act to conform with recent changes to the Streamlined Sales and Use Tax (SST) Agreement. Amended provisions include sourcing of transactions involving a prepaid wireless calling service, the definition of bundled transaction, and the tax rate at which sales and use taxes are collected.

For transactions of prepaid wireless calling services, if the general sourcing rules do not apply or if the seller does not have sufficient information to apply the general sourcing rules, the location of the sale is either the address associated with the mobile telephone number or the address from which the service is provided, as determined by the seller.

The amendment to the definition of bundled transactions states that property sold for one non-itemized price does not include a price that is separately identified by tangible personal property, product, or service on a binding sales document or other supporting sales-related document available to the purchaser. References to tangible personal property and service are also included in the amendment.

Currently, under the general sourcing provisions, when the location of a transaction is in a shared ZIP code, a seller must collect sales and use tax at the lowest Agreement combined tax rate imposed within the local taxing jurisdiction where the transaction is located. The amended legislation adds city or town option sales and use taxes and the supplemental state sales and use tax to the specified types of sales and use taxes listed in the law. (H.B. 50, Laws 2010, effective July 1, 2010)

Posted on April 15, 2010