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Utah governor: Online sales tax could replace need for gas tax

Utah may not need to increase the gas tax for education once more online sales taxes are collected.

The US Supreme Court decision this week now allows states to collect online sales taxes.

Utah had no real way to collect it before. Governor Herbert talked about that on KSL Newsradio’s “Let Me Speak to the Governor” on Thursday.

“The obligation for Utah is, when you make a purchase remotely, you need to send in your tax that would be appropriate for that purchase when you file your income taxes. Unfortunately no one has done it,” he said.

He says Utah has lost hundreds of thousands of dollars in online sales tax.

Once collection begins in force, the new tax money could mean a gas tax hike would not be needed,

“Good news for us, we are going to work with the legislature and see what we need to do, so the road tax won’t need to be collected,” he said.

A ballot proposal is for a hike of ten cents a gallon, with the money to replace general fund money for roads and allow that money to shift to education.

Governer Herbert later clarified he still hopes voters pass the tax to keep all options open.

Polls show the ten cents a gallon increase is not very popular.