Utah: The Beehive State

A good 3.1 million people live in Utah on an area of ​​220,000 km². Utah is known, among other things, for the only four-country corner in the USA, which is formed in the southeast of the state with the borders of Colorado, New Mexico and Arizona. According to ehuacom, the capital of the Beehive State is Salt Lake City.

According to the latest Hachman Index, Utah has the most diverse economy in the country. Likewise, it has one of the fastest growing economies. Business-friendly politics as well as long-term stability and sustainability are the indicators of the promising business environment in Utah.

Businesses benefit from the Beehive State’s friendly regulatory environment. The quality of life is also very high and attracts highly qualified workers. A large number of companies such as Goldman Sachs or Stadler value Utah as a location.

Utah Location Map

UTAH IS HOME TO THE “BEST-PERFORMING CITIES”

The Milken Institute’s Best-Performing Cities Index tracks and ranks the economic performance of approximately 400 US Metropolitan Statistical Areas (MSAs). A number of outcome-based metrics are used to construct the index. Among other things, job creation, wage growth and GDP growth in the high-tech sector are taken into account. Among the top 10 metro areas are three from Utah: Ogden-Clearflied (9th), Salt Lake City (4th) and Provo Orem. The latter takes first place. It is striking that all three metropolitan regions have improved, in some cases significantly, compared to 2020. In the Top Small Cities, St. George ranks fourth.

Industry experts would probably describe Utah’s approach to recruiting as conservative. Unlike other states that offer large financial incentives to attract out-of-state corporations, Utah’s business attraction program is a tax credit granted after the fact.

Utah’s performance-based tax return model supports companies willing to invest, create high-paying jobs, and act as stewards of Utah’s vibrant economy. Adobe, eBay, Amazon and P&G are among the household names doing business in Utah.

TOP IN HIGHER EDUCATION

Recently, Utah ranked second in national higher education. The reason lies in the practical and innovative approaches that have been developed in the educational institutions. The wealth of educational opportunities is used by students and workers. With the variety of programs, Utah wants to ensure that the companies have enough highly qualified employees at their disposal.

Access to higher education in Utah is open to corporations. Researchers and administration are open to cooperation. They support companies in the commercialization of technologies and other projects. In addition, the entrepreneurial spirit is very much alive on campus. The University of Utah, Brigham Young University and Utah State University are among the nation’s top universities for creating start-up companies based on university research.

Utah is a national leader in finding solutions to some of the biggest workforce challenges.

INCOME TAX IN UTAH

Utah charges an income tax of 4.95%. In addition, federal income taxes are payable.

CORPORATION TAX IN UTAH

Utah charges a 4.95% corporate income tax. In addition, federal corporation tax is payable.

UTAH SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax Rate in Utah

The sales tax in Utah is 6.1% at the state level. Municipalities or districts charge an average of 1.08% sales tax. Combined, an average of 7.18% is due.

Utah Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

January 1, 2019

Transactions included:

Gross proceeds from the sale of tangible personal property, electronically transmitted products, or services delivered in the United States

Treatment of tax-exempt transactions:

Exempt Sales and Exempt Services are included in the threshold

Reason:

sales or transactions

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

The threshold applies to the previous or current calendar year

Extra information:

  • Registration Requirements: Utah did not specify how quickly a remote business must register once it crosses the Economic Nexus Threshold. This could already happen with the next transaction.
  • Remote Seller Information
  • SB 2001

Utah Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

October 1, 2019

Economic Nexus Threshold:

Greater than $100,000 in gross sales or 200 or more transactions in the state in the current or previous calendar year. Remote sellers should exclude sales through a marketplace when calculating the threshold. Marketplace intermediaries include all sales made through the marketplace when calculating the threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Utah State Tax Commission and collect Utah sales tax on sales not taxed by a Marketplace Agent once you cross the Economic Nexus Threshold.
  • Remote Marketplace Vendors: You must register if you cross the Economic Nexus Threshold. Contact the Utah State Tax Commission for more information.
  • In-State Multichannel Sellers: You must register with the Utah State Tax Commission and collect taxes on sales that are not taxed by a marketplace intermediary.
  • State Marketplace Sellers: You must register. Contact the Utah State Tax Commission for more information.