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Third-party online sales would be taxed under bill moving to full Utah Senate

(Bebeto Matthews | AP File Photo) A journalist looks at a computer screen with webpages arranged to show Cyber Monday deals by various online retailers Monday Nov. 26, 2018, in New York. A bill moving in the Utah Legislature would expand sales tax to cover small third-party retailers.

Utah consumers would start to see a sales tax on items purchased online from small out-of-state sellers that use the platforms of retail giants such as Amazon, eBay and Overstock under a bill that cleared the Senate Revenue and Taxation Committee with a unanimous vote on Wednesday.

Though state law already imposes sales tax for online purchases, the sponsor of the bill, Sen. Curt Bramble, R-Provo, says a loophole may be allowing a “large percent of all sales” from small third-party retailers to forfeit sales taxes.

The senator said he believes there will be “new revenue generated” through the bill, but the amount has yet to be estimated.