Utah state and local tax resources provide information and training to make sure business owners are able to comply with regulations for Utah state taxes. The state government put a number of incentive programs into action to attract new businesses to Utah and promote the growth of existing businesses. Staying in compliance with Utah tax requirements and filing Utah state tax forms on time will keep your business healthy and promote growth.

Business owners operating in Utah will likely be subject to several kinds of Utah state taxes. The Utah State Tax Commission is the best resource for determining what Utah state and local tax information applies to your business. Keep in mind that businesses with accounts at the Tax Commission are required to file their Utah state tax forms even if no tax is due. The Utah state taxes most likely to affect your business are:

1. Corporate franchise tax

2. Utah sales tax and use tax

3. Property tax

4. Withholding tax

Action Steps
The best contacts and resources to help you get it done

Find out if you qualify for exemption from the corporate franchise Utah tax

The corporate franchise tax is a tax on the privilege of doing business in Utah. This Utah income tax is based on net earnings and calculated at 5% of net proceeds with a $100 minimum tax. The Utah state tax forms for corporate franchise tax must be filed even if no profit was generated. Some businesses that meet IRS exempt requirements are exempt from this Utah tax.

I recommend: Consult the IRS information provided on tax exempt status to determine if your business qualifies. You can pay your corporate franchise tax online with the Utah State Tax Commission.

Recognize the difference between Utah sales tax and use tax

Any business engaged in retail sales or service in Utah should collect Utah sales tax from their customer at the time of sale. The use tax is an excise tax on the storage or use of tangible goods in Utah where sales tax was not collected. The use tax only applies when sales tax does not. The Utah tax rate is currently 4.65%; however, local governments can also impose local Utah taxes for sales and use to be collected with the state tax. Check with Utah state and local tax resources to determine if any of these local Utah taxes must be remitted to the municipal agencies.

I recommend: Review the Business Owner's Toolkit for detailed information about Utah sales tax and the responsibilities placed on the purchaser as well as the seller. File your sales and use tax returns online with the Utah State Tax Commission.

Know Utah state tax filing requirements for business property tax

Businesses are required to pay property tax on real and personal property. Generally, business property is valuated by the county assessor. A penalty is assessed if a signed statement of personal property is not filed with the county assessor's office in the county where the property is located.

I recommend: Contact your county assessor to discover if any tax relief or property tax exemptions are available to you.

Investigate your Utah state tax filing deadlines to avoid penalties

As an employer, you are required to withhold Utah state tax from wages you pay your employees. The amount of Utah state income tax withheld is based on the employee's W-4 form as well as the applicable Utah income tax withholding schedules. Employers must remit taxes withheld and file the appropriate Utah state tax forms based on the annual, quarterly or monthly schedule assigned by the state.

I recommend: The Utah State Tax Commission offers a free Small Business Employer/ Withholding Workshop to assist you in meeting your tax obligations. Find the Utah state tax forms you need at the Utah State Tax Commission.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Businesses can request a customized workshop on a variety of tax topics by contacting the Utah State Tax Commission's Taxpayer Services Division.