- Removal of Transaction Threshold: Starting July 1, 2025, Utah will eliminate the 200-transaction rule for out-of-state sellers, simplifying sales tax compliance for smaller online retailers.
- Sales Tax Collection Criteria: Remote sellers will only be required to collect and remit sales tax in Utah if their annual sales exceed $100,000, aligning the state’s policy with national standards.
- Legislative Background: The change is a result of S.B. 47, which was signed into law on March 25, 2025, marking a significant shift in Utah’s sales tax regulations for remote sellers.
Source Fonoa
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Other sources
- Utah is eliminating the 200-transaction requirement for economic nexus, effective July 1, 2025.
- Economic nexus will now be based solely on gross revenue.
- Remote sellers and marketplace facilitators must collect and remit tax if they earn over $100,000 in gross revenue in Utah.
- The previous requirement of 200 transactions is removed.
- Businesses should review sales activity to determine if they meet the new threshold.
- Thompson Tax offers consulting services to help businesses comply with the new regulations.
Source: thompsontax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
