Salt Lake Tribune
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Talk of Internet sales tax returns
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A plan to reel in untold dollars in uncollected tax from Internet and catalog sales has not been abandoned, say Utah lawmakers. It's just on hold.

Progress on the so-called streamlined sales tax completely stalled in March when the Legislature repealed a year-old law requiring vendors to begin collecting the tax.

After six years of wrangling with interstate compacts, tax software, industry opposition and congressional indifference, the streamlined sale tax (SST) seemed on the verge of joining cold fusion in Utah's pantheon of dubious moneymaking schemes.

But this week the Interim Revenue and Taxation Committee renewed the effort to clear the streamlined sales tax's most obvious hurdle: a bewildering and ever-changing patchwork of local sales tax rates. The various governments' cuts of sales revenue ranges from 5.75 percent in Panguitch to 6.6 percent in Salt Lake County to 8.1 percent in Alta.

"It's confusing for business people collecting sales tax remotely," said committee House chairman Wayne Harper. "A lot of people are watching Utah to see if we can come up with a simplified program."

The trick, of course, is finding a painless way to harmonize the local sales tax rates - the life blood of county, municipal, and mass transit budgets - into a uniform statewide figure.

"If we can solve this," said committee Senate Chairman Sen. Curt Bramble. "We would immediately bring back legislation that reintroduces the destination-based sales tax."

Exactly how much money the streamlined sales tax (SST) would bring Utah is anyone's guess.

"Credible estimates put it at $200,000 to $250 million," Bramble said. "Get your dart out and throw it at the wall. You'll have as good an estimate as anyone else."

Simplification needed: Varying rates in Utah's counties complicate the prospect of collecting tariff
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