New Sales Tax Refund Process for Local Government

New Sales Tax Refund Process for

State and Local Government Agencies

House Bill 82, Sales and Use Taxes on Certain Lodging-Related Purchases, requires Utah state and local government entities to pay all lodging-related sales taxes at the time of purchase starting July 1, 2011.  It also allows state and local government agencies that qualify for exemption to claim a refund of lodging-related sales tax directly from the Tax Commission. 

 A purchase qualifies for a tax refund only when the lodging is paid directly by the government entity, is used for an essential government function, and is a lodging-related tax collected by the Tax Commission.  Purchases paid for by an employee with his or her own funds do not qualify for refund, even if the money is reimbursed by the government agency.

Government agencies that qualify for lodging-related sales tax exemption must first apply for a sales tax exemption account number by submitting form TC-160G to the Tax Commission.  The form and additional information regarding the new refund process are available online at tax.utah.gov .