On October 15, 2022, the Utah State Tax Commission published a proposed amendment to its rule governing the taxation of custom software for sales and use tax purposes, clarifying that the sale, rental or lease of custom computer software constitutes a sale of personal services that is not subject to tax, regardless of the form
Income tax rate reduction legislation – watch list
In just the first few months of the 2022 tax year, we have already seen several states introduce legislation that would decrease corporate and individual income tax rates. Idaho became the first state to pass such legislation this year, on February 4. The Eversheds Sutherland SALT team expects other states to follow and will provide
Taxpayers buck the domicile presumption – Utah Supreme Court rules they are nonresidents
The Utah Supreme Court ruled for taxpayers John and Brooke Buck, finding they were not domiciled in Utah during tax year 2012. The Court held that the State Tax Commission had incorrectly applied Utah’s statutory domicile presumption that attaches when a taxpayer claims a residential exemption for property tax purposes. As addressed in more detail
The Bucks Stop Here: Utah Residency Case Heads to State Supreme Court
On August 13, 2020, the Utah Supreme Court agreed to hear a married couple’s direct appeal from a State Tax Commission decision holding that the couple was domiciled in Utah during the 2012 tax year under Utah’s “presumptive domicile” statute. Specifically, the case involves Utah Code Ann. § 59-10-136(2), which provides a rebuttable presumption
Recent CA, TX and UT Tax Rulings on Income Tax, Unclaimed Property and Electricity Taxes
In this episode we discuss three recent developments, including an electricity tax matter in California (City of Arcata v. Pacific Gas & Electric Co.) a Texas unclaimed property matter (CKD Homes Direct, Ltd v. Comptroller) and a Utah income tax matter.
Listen Now:
Subscribe to our Podcast
Utah Governor Signs Amendment for Sales and Use Tax Exemptions
The Utah Governor signed a law amending sales and use tax exemptions in relation to certain data centers on March 31, 2020. S.B. 114 includes several measures including the definition of a qualifying data center for purposes of the Sales and Use Tax Act; the exemption for an occupant of a qualifying data center for
Utah Supreme Court Upholds the Constitutionality of Not Providing a Foreign Tax Credit
The Utah Supreme Court upheld the constitutionality of Utah’s taxing scheme, which provides a credit against taxes paid to other states, but not against taxes paid to foreign governments.
The taxpayers – Utah residents who owned interests in a Subchapter S corporation doing business throughout the world – argued that this scheme taxed a disproportionate
Utah Tax Commission Doesn’t Want a Piece of Your Video Streaming
On April 10, 2019, the Utah Tax Commission issued a private letter ruling to a video streaming provider (“Taxpayer”) finding that the Taxpayer’s sales of subscriptions entitling subscribers to enhanced features on the Taxpayer’s streaming platform, are not subject to sales and use tax. On its internet-based platform, the Taxpayer provides a video streaming service
Taxpayer’s Data Center-Related Purchases Ruled Mostly Exempt in Utah
By Zack Atkins & Open Weaver Banks
The Utah State Tax Commission ruled that machinery and equipment purchased by the owner of a social networking community qualified for the state’s exemption for purchases and leases of certain property used in the operation of a web search portal. In connection with its proposed construction and operation
Utah Taxes Online Banking Service Provider
The Utah State Tax Commission ruled that sales to financial institutions in Utah of the right to use online banking software, finance and budget tool software, online bill payment software, mobile banking software, and a mobile banking application are sales of tangible personal property subject to Utah sales and