Sales and Excise Tax
Utah’s sales tax dates to the Great Depression and remains a major revenue source for state and local governments today. Utah’s excise taxes (a tax applied on the sale of a particular product, such as gas, cigarettes, or tobacco) similarly date back roughly 100 years. Combined, Utah’s sales and excise taxes comprise roughly 40% of total state and local tax collections, serving as critical revenue sources that fund a variety of basic government services, including transportation, social services, and public safety.
Tourism, Recreation, and Restaurant Taxes in Utah
Tourism in Utah generates significant tourism-specific and other taxes, but regional differences in local revenues and tourism impacts can pose challenges.
Growing but Narrowing: Long-Term Structural Changes in Utah’s Sales Tax Base
Utah’s sales tax base grew with inflation and population growth in recent decades but failed to pace with economic growth until recently.
Salt Lake County Zoo, Arts & Parks (ZAP) Tax
Salt Lake County collected $36.7 million in ZAP tax revenue in fiscal year 2023, supporting organizations that collectively employ nearly 15,000 individuals and receive over 11 million visitors annually.
A Tale of Two Recessions: How Utah’s Sales Tax Performed Over Recent Business Cycles
Utah’s sales tax performed differently during recent recessions, and now approaches a new normal amid structural changes.
Video: Tax Modernization in Utah: Sales and Use Tax
Utahns share a common interest in a state and local tax system that provides for our needs, keeps the economy strong, and remains viable over the long term. This video presents economic and demographic realities impacting Utah’s current sales and use tax system.