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Internet Tax Threatens to

Bury More Utah Businesses!

(Alert for 6/21/04 Last updated on 7/7/04)

Update for 7/7/04: The legislature voted in their recent "emergency" session to delay the tax on Internet sales for one year (see SB 3001). Consistent with their tax and spend philosophy, they refused to eliminate the costly tax altogether. Learn more and contact your senator and representative to voice your disapproval for their cowardice below.


Summary: SB 147 S1, passed in 2003, is a 208-page, complex bill that drastically altered Utah's sales tax laws targeting out-of-state Internet and catalog sales and subjecting Utahns to a dangerous new web of bureaucratic regulation. Take action to ward off this tax nightmare.


1. Businesses Begin to Pay the Price


1. Businesses Begin to Pay the Price

Utah businesses are already beginning to pay the heavy price of complying with Senate Bill 147 S1, passed in the 2003 session (see the original legislative alert on this bill).   Some businesses, such as RC Willey, have reportedly spent tens of thousands of dollars to purchase and implement software to track the new complex taxes. Many Utah businesses will likely not be able to afford the weighty price tag of compliance.

Governor Olene Walker and many legislators now fear the political backlash and desire to hold an "emergency session" to delay the implementation of the new tax. Howard Stephenson, senator and president of the Utah Taxpayers Association, recently stated:

"These taxes were not understood by legislators or the general public [when the bill was passed]."
Source: "Special session planned to revamp sales-tax bill," Dan Harrie, Salt Lake Tribune, June 17, 2004.

Unfortunately, Stephenson, who has a dismal record on taxes and spend issues, also voted for SB 147 S1. When Stephenson learned later that SB 147 S1 would bring in $100 million less than projected by the Utah State Tax Commission, he stated incredulously: "Is that all?"

Again, as was implied in the original legislative alert we posted on SB 147 S1, with leadership like this, who needs statists?

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Utah is now the 7th highest taxed state in America.  If the legislature can delay the implementation of SB 147 S1 for yet another year, it is further proof that they never needed the tax in the first place.

Citizens, particularly business owners and those who rely upon employment in the private sector, need to wake up and vigorously resist the many burdens being heaped upon them by a runaway legislature. We recommend the following actions:

1. Call (and, if possible, fax and email) the following officials:

Please inform us of any responses you receive at info@accountabilityutah.org.

2. Forward this message to your family, friends, and any activists you know. Encourage them to voice their concerns and get involved.

3. Volunteer to help flier the districts of tax-and-spend officials by e-mailing us at info@accountabilityutah.org.

4. Monitor this site for new and updated information and join our alert list by e-mailing us at info@accountabilityutah.org.

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Accountability Utah recipe: Take our information and opinion, research their information and opinion (if it is available), and then examine the law and draw your own conclusions. For more information on similar issues, see the Taxes & Spending section of our Issues & Alerts page.

If you have comments or suggestions, please email us at info@accountabilityutah.org.


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