Utah consumers would start to see a sales tax on items purchased online from small out-of-state sellers that use the platforms of retail giants such as Amazon, eBay and Overstock under a bill that cleared the Senate Revenue and Taxation Committee with a unanimous vote on Wednesday.
Though state law already imposes sales tax for online purchases, the sponsor of the bill, Sen. Curt Bramble, R-Provo, says a loophole may be allowing a “large percent of all sales” from small third-party retailers to forfeit sales taxes.
A law passed during a special session in July that became effective in January, requires online retailers to track purchases made by Utahns and impose a sales taxes if transactions in the state exceeded 200 or produced over $100,000 in revenue.