Are Manufacturing and Machinery subject to sales tax?
While Utah's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Utah, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Utah.
In the state of Utah, any sort of machinery and equipment which is used in the manufacturing of an item which will be sold as tangible personal property and that has an economic life-span of at least three years is considered to be exempt. In addition, certain types of machinery and equipment which is used in the amusement industry is also considered to be exempt.
Sales of raw materials are exempt from the sales tax in Utah.
Utilities & Fuel
Sales of utilities & fuel are exempt from the sales tax in Utah.
Back to Utah Sales Tax Handbook