Effective July 1, 2025, Utah is simplifying its sales and use tax economic nexus threshold by eliminating the 200-transaction requirement. Under S.B. 47 (Laws 2025), economic nexus will now be based solely on gross revenue, aligning Utah more closely with the streamlined standards for remote sellers and marketplace facilitators in other states.
New Utah Economic Nexus Threshold for Remote Sellers and Marketplace Facilitators
Beginning July 1, 2025, a voluntary remote seller or marketplace facilitator is required to collect and remit Utah sales and use tax if, in either the current or previous calendar year:
- The seller earns more than $100,000 in gross revenue from the sale of tangible personal property, electronically transferred products, or taxable services for storage, use, or consumption in Utah, and/or
- The marketplace facilitator makes or facilitates gross sales exceeding $100,000 in Utah, either on its own behalf or on behalf of one or more third-party sellers.
What Changed in Utah’s Sales Tax Economic Nexus Law?
Previously, a remote seller or facilitator triggered economic nexus in Utah by either:
- Exceeding $100,000 in Utah gross sales, or
- Conducting 200 or more separate transactions into the state.
Starting July 1, 2025, the transaction-based threshold is eliminated. Only the $100,000 gross revenue threshold will apply. This means businesses no longer need to track the number of individual transactions into Utah, just total revenue.
Who Is Affected by the Change?
- Remote sellers making sales into Utah, and
- Marketplace facilitators selling or facilitating sales on behalf of others.
Companies should review their 2024 and 2025 sales activity to determine whether they meet the new Utah nexus threshold and need to begin collecting and remitting tax.
How Thompson Tax Can Help with Utah Economic Nexus Compliance
Navigating evolving economic nexus laws across multiple states can be challenging. At Thompson Tax, we are your trusted resource for sales and use tax consulting.
Our experts help businesses:
- Evaluate multi-state economic nexus exposure,
- Determine Utah sales tax obligations under the new threshold,
- Register for sales tax in Utah (and other states) and ensure timely and accurate compliance, and
- Implement customized, efficient tax strategies tailored to your business model.
We closely monitor state tax law changes, so you don’t have to. Whether you’re a growing e-commerce seller or a high-volume marketplace facilitator, we’re here to ensure your business stays compliant.
Contact Thompson Tax today. We are your Trusted Tax Advisors.