Tax changes are on the horizon in Utah. Beginning July 1, 2017, there will be several new townships (with new reporting requirements), higher local transient room taxes, higher fuel tax rates, and increased fees and rates for telecommunications and prepaid cell phones. Read on for more details.
Utah’s population is growing. In 2016, according to the U.S. Census Bureau, Utah was “the nation’s fastest-growing state.” The population is now greater than three million and gaining. People are pouring into the small towns of Salt Lake County, stressing existing roads, filling vacant land, and impacting sales and use tax collections.
New tax jurisdictions
The following new townships will be incorporated into Salt Lake County as of July 1. Although their sales and use tax rates won’t change (all have a rate of 6.85 percent), sales and use tax reporting in these areas will be affected by incorporation. Starting July 1, sales need to be reported in the townships below instead of unincorporated Salt Lake County:
- Copperton Township
- Emigration Canyon Township
- Kearns Township
- Magna Township
- White City Township
Additional information is available from the Utah State Tax Commission in Tax Bulletin 8-17.
Higher transient room tax
Cache County will increase the county’s transient room tax beginning July 1. The rate will rise from 3 to 4.25 percent on charges for the use of public accommodations for fewer than 30 consecutive days in any of the following:
- Bed and breakfast
- Hotel or motel
- Recreational vehicle park
- Resort home
The 4.25 percent rate is on top of other state and local taxes. Additional information is available in Tax Bulletin 9-17.
Statewide fuel tax rate increases
Rates for compressed natural gas (CNG), liquefied natural gas (LNG), and hydrogen used to power motor vehicles will increase as follows beginning July 1:
- CNG: 14.5 cents per gallon equivalent
- LNG: 14.5 cents per diesel gallon equivalent
- Hydrogen used to power motor vehicles: 14.5 cents per GGE
See Tax Bulletin 7-17 for additional information.
Statewide telecommunications and prepaid cell phone rate increases
The Utah Legislature has mandated (SB 198) the following statewide telecommunications tax and fee changes:
- A new radio network charge of $0.18 per line per month will be imposed
- The E-911 emergency telephone charge will increase by to $0.71 per line per month
- The computer-aided dispatch charge of $0.06 per line per month will be discontinued
As a result of the above changes, the new total E-911 telephone fee will jump from $0.76 to $0.98.
In addition, prepaid cell phone charges will increase from 1.9 to 2.45 percent. See Tax Bulletin 10-17 for more details.
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