Blank Utah Tax Exemption Form

The Utah Tax Exemption form is a certificate that allows certain purchasers to claim exemptions from sales, use, tourism, and motor vehicle rental taxes. This form is essential for businesses, government entities, and charitable organizations that qualify for tax relief on specific purchases. Understanding how to properly complete and utilize this form can help save money and ensure compliance with state regulations.

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The Utah Tax Exemption form, officially known as the Exemption Certificate (Sales, Use, Tourism, and Motor Vehicle Rental Tax), is a crucial document for businesses and institutions seeking to claim tax exemptions on certain purchases. This form, designated as TC-721, outlines various categories under which exemptions can be claimed, including resale, religious or charitable purposes, and specific uses related to manufacturing and construction. To utilize the form, the purchaser must provide essential details such as the name of the business, contact information, and the sales tax license number, which is mandatory for certain exemptions. Each exemption category requires the signer to check a corresponding box to indicate the basis for the exemption. Notably, the form emphasizes the importance of retaining it for record-keeping and audit purposes, rather than submitting it to the Tax Commission. Various exemptions are available, ranging from machinery and equipment for manufacturing to specific purchases by government entities and educational institutions. Understanding the specifics of this form can help eligible purchasers navigate their tax obligations effectively.

File Information

Fact Name	Details
Form Purpose	The Utah Tax Exemption form (TC-721) is used to claim exemptions from sales, use, tourism, and motor vehicle rental taxes.
Governing Laws	This form is governed by Utah Code §59-12-104 and other related tax statutes.
Submission Instructions	Do not send the completed form to the Tax Commission. Keep it for your records in case of an audit.
Exemption Criteria	Exemptions can be claimed for various purposes, including resale, charitable use, and specific types of equipment.
Sales Tax License Requirement	A sales tax license number is required for all exemptions marked with an asterisk (*).
Specific Exemption Types	Exemptions include categories such as machinery for manufacturing, fuels, and construction materials for charitable organizations.
Government and Educational Use	Government entities and public schools must use a different form (TC-721G) to claim exemptions.
Audit Preparedness	It is essential to maintain this form with your records as it may be requested during an audit.
Contact Information	For questions, you can email taxmaster@utah.gov or call 801-297-2200.

Documents used along the form

The Utah Tax Exemption form is an essential document for businesses and organizations seeking to claim sales tax exemptions. However, it is often accompanied by various other forms and documents that help clarify the specific exemptions being claimed or provide additional information to support the exemption request. Below is a list of common forms and documents used alongside the Utah Tax Exemption form, each serving a unique purpose.

TC-721G: This form is specifically designed for purchases made by government entities, Native American tribes, and public schools. It outlines the exemptions available to these organizations, ensuring they comply with state tax regulations.
Sales Tax License: Businesses must obtain this license to legally collect sales tax. It is essential for any exemption claimed on the Utah Tax Exemption form, as it verifies the business’s authority to operate and collect taxes in the state.
Exemption Certificates for Charitable Organizations: Nonprofits often need to provide additional documentation proving their charitable status. This certificate confirms that the organization qualifies for tax-exempt purchases under state law.
Construction Exemption Form: For construction materials purchased on behalf of religious or charitable organizations, this form verifies that the materials will be used for qualifying projects, ensuring compliance with tax exemption criteria.
Direct Mail Exemption Form: This document is used to claim exemptions on direct mail purchases. It ensures that the business will report and pay the necessary sales tax on these transactions in subsequent filings.
Alternative Energy Exemption Form: This form is for businesses involved in alternative energy production. It certifies that the equipment or materials purchased meet specific criteria for tax exemptions related to renewable energy projects.
Research and Development Exemption Form: Companies engaged in R&D may use this form to claim exemptions for materials and equipment used in qualified research activities, promoting innovation in Utah.
Prosthetic Device Certification: This document certifies that prosthetic devices are purchased for human use as prescribed by a physician, ensuring tax exemptions for necessary medical devices.
Agricultural Producer Exemption Form: Farmers can use this form to claim exemptions on items used directly in their commercial farming operations, supporting the agricultural sector in Utah.
Operating Agreement: To formalize your LLC's structure, it's essential to have an Operating Agreement in place. This document outlines governance and operational processes, ensuring compliance with state laws. To acquire the necessary template, visit Missouri PDF Forms.
Tourism/Motor Vehicle Rental Exemption Form: This form is necessary for businesses renting vehicles for tourism purposes, clarifying the specific conditions under which the exemption applies.

Understanding these additional forms and documents can streamline the exemption process and ensure compliance with Utah tax laws. Proper documentation not only supports the claims made on the Utah Tax Exemption form but also helps avoid potential issues during audits or reviews. Always keep these forms organized and readily accessible for reference.

Common mistakes

Filling out the Utah Tax Exemption form can seem straightforward, but many individuals and businesses make common mistakes that can lead to complications. One frequent error is neglecting to include the required sales tax license number. This number is essential for all exemptions marked with an asterisk. Without it, the form may be deemed incomplete, and the exemption could be rejected.

Another mistake involves failing to check the appropriate box that indicates the basis for the exemption being claimed. Each exemption category has specific criteria, and selecting the wrong one can result in tax liability. It is crucial to read each option carefully and ensure that the selected exemption accurately reflects the intended purchase.

People often overlook the importance of providing complete and accurate contact information. Missing or incorrect details, such as the business name, address, or phone number, can delay processing or lead to misunderstandings. It is vital to double-check all entries before submitting the form.

Additionally, some individuals mistakenly believe they can submit the exemption certificate to the Tax Commission. In fact, the instructions clearly state that the certificate should be kept with the purchaser's records. This oversight can lead to confusion during audits or inquiries from tax authorities.

Another common issue arises when individuals misinterpret the exemption limits. For instance, the exemption for religious or charitable institutions applies only to purchases totaling $1,000 or more unless specific contractual conditions are met. Failing to adhere to these limits can result in unexpected tax obligations.

Many people also forget to notify the seller of any cancellation, modification, or limitation of the exemption claimed. This step is crucial to maintain compliance and avoid potential penalties. Keeping sellers informed ensures that all parties are on the same page regarding tax responsibilities.

Misunderstanding the nature of the purchases can lead to errors as well. For example, claiming an exemption for items that do not qualify under the specified categories can trigger audits or penalties. It is essential to ensure that the items purchased genuinely meet the criteria outlined in the exemption categories.

Lastly, some individuals fail to keep proper documentation. Supporting documents can be vital in case of an audit. Retaining receipts and records of transactions helps substantiate claims made on the exemption form. By avoiding these common mistakes, individuals and businesses can navigate the Utah Tax Exemption process more effectively.

Document Preview Example

Utah State Tax Commission • 210 N 1950 W • Salt Lake City, UT 84137

Exemption Certificate

(Sales, Use, Tourism and Motor Vehicle Rental Tax)

TC-721

Rev. 5/20

Name of business or institution claiming exemption (purchaser)				Telephone number

Street address		City		State	ZIP Code

Authorized signature	Name (please print)			Title

Name of Seller or Supplier:				Date
Name of Seller or Supplier:

Sales Tax License Number:			Required for all exemptions marked with an asterisk (*)

The signer of this certificate MUST check the box showing the basis for which the exemption is being claimed.

DO NOT SEND THIS CERTIFICATE TO THE TAX COMMISSION

Keep it with your records in case of an audit.

For purchases by government, Native American tribes and public schools, use form TC-721G.

* Resale or Re-lease

I certify I am a dealer in tangible personal property or services that are for resale or re-lease. If I use or consume any tangible personal property or services I purchase tax free for resale, or if my sales are of food, beverages, dairy products and similar confections dispensed from vending machines (see Rule R865-19S-74), I will report and pay sales tax directly to the Tax Commission on my next sales and use tax return.

* Religious or Charitable Institution

I certify the tangible personal property or services purchased will be used or consumed for essential religious or charitable purposes.

This exemption can only be used on purchases totaling $1,000 or more, unless the sale is pursuant to a contract between the seller and purchaser.

Construction Materials Purchased for

Religious and Charitable Organizations

I certify the construction materials are purchased on behalf of a religious or charitable organization and that they will be installed or converted into real property owned by the religious or charitable organization.

Name of religious or charitable organization:

________________________________

Name of project: _______________________

* Fuels, Gas, Electricity

I certify all natural gas, electricity, coal, coke, and other fuel purchased will be predominantly used for industrial use.

* Machinery and Equipment and Normal Operating Repair or Replacement Parts Used in a Manufacturing Facility, Mining Activity, Web Search Portal or Medical Laboratory

I certify the machinery and equipment, normal operating repair or replacement parts, or materials (except office equipment or office supplies) are for use in a Utah manufacturing facility described in SIC Codes 2000-3999 or a NAICS code within NAICS Sector 31-33; in a qualifying scrap recycling operation; in a co-generation facility placed in service on or after May 1, 2006; in the operation of a Web search portal by a new or expanding business described in NAICS Code 518112; in a medical laboratory described in NAICS Code 621511; or in a business described in NAICS 212, Mining (except Oil and Gas), or NAICS 213113, Support Activities for Coal Mining, NAICS 213114, Support Activities for Metal Mining, or NAICS 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining. For a definition of exempt mining equipment, see Utah Code §59-12-104(14).

* Machinery and Equipment and Normal Operating Repair or Replacement Parts Used in an Electronic Payment Service

I certify the machinery and equipment and normal operating repair or replacement parts have an economic life of three years or more and are for use in the operation of an electronic payment service described in NAICS Code 522320.

* Machinery or Equipment Used by Payers of Admissions or User Fees

I certify that: (1) the machinery or equipment has an economic life of three or more years and will be used by payers of admissions or user fees (Utah Code §59-12-103(1)(f)); (2) the buyer is in the amusement, gambling or recreation industry (NAICS Subsector 713); and (3) at least 51 percent of the buyer’s sales revenue for the previous calendar quarter came from admissions or user fees.

*  Refinery Machinery, Equipment and Normal Repair or Replacement Parts

I certify the machinery, equipment, normal operating repair parts, catalysts, chemicals, reagents, solutions or supplies are for the use of a refiner who owns, leases, controls or supervises a refinery (see Utah Code §63M-4-701) located in Utah, and beginning on July 1, 2021, annually obtains a valid refiner tax exemption certification from the Office of Energy Development.

* Pollution Control Facility

I certify our company has been granted a “Certification of Pollution Control Facilities” as provided for by Utah Code §§19-12-101 - 19-12-305 by either the Air Quality Board or the Water Quality Board. I further certify each item of tangible personal property purchased under this exemption is qualifying.

* Municipal Energy

I certify the natural gas or electricity purchased: is for resale; is prohibited from taxation by federal law, the U.S. Constitution, or the Utah Constitution; is for use in compounding or producing taxable energy; is subject to tax under the Motor and Special Fuel Tax Act; is used for a purpose other than as a fuel; is used by an entity exempted by municipal ordinance; or is for use outside a municipali- ty imposing a municipal energy sales and use tax. The normal sales tax exemptions under Utah Code §59-12-104 do not apply to the Municipal Energy Sales and Use Tax.

* Short-term Lodging Consumables

I certify the tangible personal property is consumable items purchased by a lodging provider as described in Utah Code §59-12-103(1)(i).

* Direct Mail

I certify I will report and pay the sales tax for direct mail purchases

on my next Utah SALES AND USE TAX RETURN.

* Commercial Airlines

I certify the food and beverages purchased are by a commercial airline for in-flight consumption; or, any parts or equipment purchased are for use in aircraft operated by common carriers in interstate or foreign commerce.

* Commercials, Films, Audio and Video Tapes

I certify that purchases of commercials, films, prerecorded video tapes, prerecorded audio program tapes or records are for sale or distribution to motion picture exhibitors, or commercial television or radio broadcasters. If I subsequently resell items to any other customer, or use or consume any of these items, I will report any tax liability directly to the Tax Commission.

* Alternative Energy

I certify the tangible personal property meets the requirements of UC §59-12-104 and is leased or purchased by or for an alternative energy electricity production facility, a waste energy production facility, or a facility that produces fuel from alternative energy.

* Locomotive Fuel

I certify this fuel will be used by a railroad in a locomotive engine. Starting Jan. 1, 2021, all locomotive fuel is subject to a 4.85% state tax.

* Research and Development of Alternative Energy Technology

I certify the tangible personal property purchased will be used in research and development of alternative energy technology.

* Life Science Research and Development Facility

I certify that: (1) the machinery, equipment and normal operating repair or replacement parts purchased have an economic life of three or more years for use in performing qualified research in Utah; or (2) construction materials purchased are for use in the construc- tion of a new or expanding life science research and development facility in Utah.

* Mailing Lists

I certify the printed mailing lists or electronic databases are used to send printed material that is delivered by U.S. mail or other delivery service to a mass audience where the cost of the printed material is not billed directly to the recipients.

* Semiconductor Fabricating, Processing or Research and Development Material

I certify the fabricating, processing, or research and development materials purchased are for use in research or development, manufac- turing, or fabricating of semiconductors.

* Telecommunications Equipment, Machinery or Software

I certify these purchases or leases of equipment, machinery, or software, by or on behalf of a telephone service provider, have a useful economic life of one or more years and will be used to enable or facilitate telecommunications; to provide 911 service; to maintain or repair telecommunications equipment; to switch or route telecommunications service; or for sending, receiving, or transport- ing telecommunications service.

* Aircraft Maintenance, Repair and Overhaul Provider

I certify these sales are to or by an aircraft maintenance, repair and overhaul provider for the use in the maintenance, repair, overhaul or refurbishment in Utah of a fixed-wing, turbine-powered aircraft that is registered or licensed in a state or country outside Utah.

* Ski Resort

I certify the snow-making equipment, ski slope grooming equipment or passenger rope-ways purchased are to be paid directly with funds from the ski resort noted on the front of this form.

* Qualifying Data Center

I certify that the machinery, equipment or normal operating repair or replacement parts are: (1) used in a qualifying data center as defined in Utah Code §59-12-102; (2) used in the operations of the qualifying data center or in an occupant’s operations in the qualify- ing data center; and (3) have an economic life of one or more years.

Leasebacks

I certify the tangible personal property leased satisfies the following conditions: (1) the property is part of a sale-leaseback transaction;

(2) sales or use tax was paid on the initial purchase of the property; and, (3) the leased property will be capitalized and the lease payments will be accounted for as payments made under a financ- ing arrangement.

Film, Television, Radio

I certify that purchases, leases or rentals of machinery or equip- ment will be used by a motion picture or video production company for the production of media for commercial distribution.

Prosthetic Devices

I certify the prosthetic device(s) is prescribed by a licensed physician for human use to replace a missing body part, to prevent or correct a physical deformity, or support a weak body part. This is also exempt if purchased by a hospital or medical facility. (Sales of corrective eyeglasses and contact lenses are taxable.)

Out-of-State Construction Materials

I certify this tangible personal property, of which I am taking posses- sion in Utah, will be taken out-of-state and will become part of real property located in a state that does not have sales tax, is taxed at a lower rate, or does not allow credit for tax paid to Utah. I will report the tax on my next Utah return at the lower of the Utah rate where the tangible personal property was purchased or the rate of the location where the tangible personal property is converted to real property in the other state if the other state allows a credit for tax paid to Utah.

Agricultural Producer

I certify the items purchased will be used primarily and directly in a commercial farming operation and qualify for the Utah sales and use tax exemption. This exemption does not apply to vehicles required to be registered.

Tourism/Motor Vehicle Rental

I certify the motor vehicle being leased or rented will be temporarily used to replace a motor vehicle that is being repaired pursuant to a repair or an insurance agreement; the lease will exceed 30 days; the motor vehicle being leased or rented is registered for a gross laden weight of 12,001 pounds or more; or, the motor vehicle is being rented or leased as a personal household goods moving van. This exemption applies only to the tourism tax (up to 7 percent) and the short-term motor vehicle rental tax (Transportation Corridor Funding – 2.5 percent) – not to the state, local, transit, zoo, hospital, highways, county option or resort sales tax.

Textbooks for Higher Education

I certify that textbooks purchased are required for a higher education course, for which I am enrolled at an institution of higher education, and qualify for this exemption. An institution of higher education means: the University of Utah, Utah State University, Utah State University Eastern, Weber State University, Southern Utah Universi- ty, Snow College, Dixie State University, Utah Valley University, Salt Lake Community College, or the Utah System of Technical Colleges.

*Purchaser must provide sales tax license number in the header on page 1.

NOTE TO PURCHASER: You must notify the seller of cancellation, modification, or limitation of the exemption you have claimed. Questions? Email taxmaster@utah.gov, or call 801-297-2200 or 1-800-662-4335.

Similar forms

IRS Form W-9: This form is used to provide taxpayer identification information to businesses or entities that will report payments made to you. Similar to the Utah Tax Exemption form, it requires accurate identification details and is kept for record-keeping purposes.
Sales Tax Exemption Certificate (varies by state): This document allows businesses to purchase goods without paying sales tax if the items are intended for resale. Like the Utah Tax Exemption form, it requires the buyer to declare the basis for the exemption and is retained for auditing purposes.
State-specific Nonprofit Exemption Form: Nonprofit organizations often use this form to claim exemption from sales tax on purchases made for charitable purposes. Similar to the Utah form, it requires the organization to certify the intended use of the purchased items.
Affidavit of Intent to Homeschool: This form issued by Maricopa County serves as a legal document for families choosing to educate their children through homeschooling, conforming to A.R.S. §15-802. Essential parts of this form include personal information sections for both student and parent/guardian, as well as a stipulation on the prohibition of information release without explicit consent. For more details, refer to the Affidavit Homeschool Maricopa County form.
Government Entity Exemption Certificate: This document allows government agencies to make tax-exempt purchases. It parallels the Utah Tax Exemption form by requiring the agency to specify the nature of the exemption and to maintain the form for record-keeping.

Key takeaways

Filling out and utilizing the Utah Tax Exemption form requires attention to detail and understanding of the specific exemptions available. Here are some key takeaways to keep in mind:

Understand the Purpose: The form is designed to claim exemptions from sales, use, tourism, and motor vehicle rental taxes. It is crucial to identify the correct basis for the exemption being claimed.
Keep It for Your Records: Do not send the completed form to the Utah Tax Commission. Instead, retain it with your business records in case of an audit.
Check the Right Box: The signer must check the appropriate box that corresponds to the exemption category. Each category has specific requirements that must be met to qualify.
Sales Tax License Number: For certain exemptions marked with an asterisk, it is mandatory to provide a sales tax license number. Ensure this information is accurately included to avoid complications.