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How much is utah sales tax

how much is utah sales tax


1. Understanding the "sales tax" on merchandise and food in the U.S.

2. Special taxes on services used by tourists (hotel and car rental taxes)

3. Import duties on certain items brought into the U.S.

4. Income and employment taxes

1. Understanding the "sales tax" on merchandise and food in the U.S.

One aspect of visiting the United States that often confuses anybody from anywhere else in the world, is the sales tax. In Europe, a Value-Added Tax (VAT) is included in the price of everything sold. Whether you are shopping in a supermarket, eating in a restaurant, or buying a ticket for a movie, this VAT is included in the posted price. Surprise!  In the United States, it is different in most cases!

In the U.S. if there is a "sales tax" on purchased items, it is not marked as such on the label or menu. The tax normally will be  added to the price at the cash register or added on the bill. Alcohol, medicines, jewelery, cigarettes, restaurant meals, clothing, electronics, services, and many  other things except gasoline can have a tax tacked on to it at the end.

For example a bottle of wine will retail for $50. The local tax on alcohol is 20%. 20% of $50 is $10. This means that $10 will be added to the price of the bottle of wine, $50, to cover the tax and the total sum that must be paid is actually $60. Note: There may also be a special state, county, and/or city/town tax that applies only to sales of beer, wine, and other forms of alcohol. This tax will be in addition to any sales tax and will normally appear as a separate line on the bill. There is also a federal tax on alcohol which is included in the price of the beer, wine, or other form of alcohol and is not listed on the bill.

In most states not everything purchased has a sales tax applied. Where food is concerned it largely depends on labor involved: supermarkets generally do not put a sales tax on comestibles because culturally it is seen as cruel to tax basic necessities, especially for the poor (most Americans buy basic staples like eggs, milk, canned goods, etc. and eat them at home.) Restaurants charge a sales tax because it involves somebody else making dinner for you; some areas tax restaurant food at an even higher rate by applying a special restaurant tax.

Sales taxes are applied to items purchased and not to separately-listed charges for labor or services. For example, a repair bill might list the price of parts used, with a sales tax applied to their purchase, but if the cost of the installation labor used is listed separately, the sales tax is not applied to that portion of

the bill. No sales tax is imposed on any gratuity or "tip" that you may choose to add to your bill, because it is considered a payment for labor or services.

Sales taxes will not be added to many services used by tourists if no items are actually sold. For example, no sales tax is applied to the price of an admission ticket, coach tour, or a haircut because no tangible merchandise is transferred to the buyer beyond incidental items such as a booklet. For the same reason, no sales taxes are applied to a hotel room rate. However, many places have substantial special taxes that apply to car rentals, and hotel room rates (see below), and some places are starting to impose separate taxes on services.

Sales taxes are imposed on merchandise that you take with you from the shop. Unlike VAT schemes, there is no "export" price or system for a refund of the tax if you take the merchandise with you outside of the U.S. However, sales taxes will not be imposed on merchandise that you have shipped back to your home in another country, or in some cases, back to your home or hotel in another U.S. state. For major purchases, it is wise to compare the cost of goods taken with you (including the sales tax), to the cost of shipping back to your home (without the sales tax but with the shipping cost and any customs duty that might be charged by your own country upon import).

Sales taxes are imposed by individual U.S. states, not by the federal government. Local governments (cities, towns, and counties) in the U.S. may impose additional sales taxes, often 1-2%. For that reason, the same merchandise may have a different tax and thus different total cost in one city over another.As some cities and towns are in different counties it is also possible that the local tax rate may differ in different parts of the same city or town. In some places, the combined state and local sales taxes can be as high as 8-10% of the items price. If you are planning to make large purchases while in the U.S. you may want to do your shopping in a place with a lower sales tax rate. If you are in a big city, you may be able to get a lower sales tax rate simply by going to a shopping center in a nearby suburban town that has a lower local sales tax.

Sales tax rates for each state are listed below. These rates do not include local taxes imposed by many cities, town, and counties.

Here are the tax rates for 2012 (from ):

- - - - - - - - - - - Sate sales tax rates (year 2012) - - - - - - - - - - -

Category: Taxes

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