Sales Tax

Question: Why am I being charged sales tax when the computer technician did not replace any parts in my computer, or otherwise do anything physical to it?

Answer: Utah law generally provides for sales or use tax on the repair of tangible personal property. The tax on repairs or renovations applies whether or not any parts are actually used in the repairs or renovations of the tangible personal property. Both computers and prewritten computer software (Microsoft Windows) are tangible personal property under Utah law.


Question: Why am I being charged sales tax when the computer technician repaired my computer from remote and did not even physically touch my computer?

Answer: Utah law does not specify how a repair is made, just if a repair is made to your computer. Both computers and prewritten computer software are considered tangible personal property under Utah law. Utah Code Ann Section 59-12-103(1)(g) applies the same tax to “amounts paid or charged for services for repairs or renovations of . . . tangible personal property”.

Please see http://tax.utah.gov/commission/ruling/05-018.pdf for further questions.