Effective July 1, 2012 Utah has a new compliance weapon added to its arsenal. That would be H.B. 384 - signed by the governor on March 22, 2012.

What H.B. 384 provides for is an expansion in sales and use reporting tax rules all designed to catch out of state sellers through revamping how Utah defines nexus. In short, if you are a seller of tangible personal property, a service, or a product transferred electronically for use in Utah then you are considered to be engaged in doing business in Utah and thus must pay and/or collect and remit the requisite Utah sales/use taxes if you meet certain provisions of this new law.

Utah is just one of a growing number of states expanding their definition of "nexus" to make sure that those doing in state business are paying their taxes - all part of a growing effort to capture revenue on the part of cash strapped state governments. Please do not hesitate to let us know if you are concerned that this new law may impact your organization and its business activities and if, as a result, you have questions and/or need compliance assistance.