Download Zipped Enrolled WordPerfect HB0359.ZIP
[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 359 Enrolled

             1     

TAX CHANGES

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John Dougall

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Corporate Franchise and Income Taxes chapter, the Individual
             10      Income Tax Act, the Sales and Use Tax Act, the Transportation Code, and related
             11      provisions to address the income taxation of individuals, estates, and trusts, including
             12      real estate investment trusts, a change in a state sales and use tax rate, a sales and use
             13      tax exemption, and the expenditure of certain state sales and use tax revenues.
             14      Highlighted Provisions:
             15          This bill:
             16          .    defines terms;
             17          .    addresses the income taxation of a real estate investment trust or income from a real
             18      estate investment trust;
             19          .    repeals provisions imposing an individual income tax on the basis of graduated
             20      brackets and rates;
             21          .    provides that an individual income tax is imposed on the basis of a single tax rate,
             22      including:
             23              .    modifying and repealing definitions;
             24              .    modifying additions to, subtractions from, and adjustments to adjusted gross
             25      income;
             26              .    addressing the taxation of a nonresident individual or part-year resident
             27      individual; and
             28              .    addressing provisions relating to the determination and reporting of income tax
             29      liability and information;


             30          .    addresses the apportionment of business income for purposes of the individual
             31      income tax;
             32          .    modifies the income taxation of estates and trusts, including:
             33              .    providing definitions;
             34              .    providing that the tax is calculated on the basis of unadjusted income;        
             35              .    modifying additions to, subtractions from, and adjustments to unadjusted
             36      income;
             37              .    addressing the taxation of a nonresident estate or trust; and
             38              .    addressing provisions relating to the determination and reporting of income tax
             39      liability and information;
             40          .    addresses the taxation of pass-through entities, including:
             41              .    providing definitions;    and
             42              .    renumbering and amending provisions relating to pass-through entities;
             43          .    renumbers and amends provisions relating to tax credits, including tax credits for:
             44              .    a taxpayer;
             45              .    an investment in the Utah Educational Savings Plan Trust; or
             46              .    retirement income;
             47          .    provides nonrefundable tax credits for:
             48              .    a trust or estate;
             49              .    a contribution to a medical care savings account;
             50              .    capital gain transactions;
             51              .    certain amounts paid for insurance under a health benefit plan; or
             52              .    certain solar projects;
             53          .    requires the Utah Tax Review Commission to study the solar projects tax credits;
             54          .    provides that a person may not claim a nonrefundable renewable energy systems tax
             55      credit for certain purchases for which the person claims a tax credit for certain solar
             56      projects;
             57          .    modifies the refundable renewable energy tax credit to clarify that an estate or trust


             58      may claim the tax credit;    
             59          .    addresses the apportionment of tax credits;    
             60          .    addresses the following relating to a medical care savings account:
             61              .    taxation;
             62              .    penalties; and
             63              .    interest;
             64          .    amends provisions relating to the taxation of an investment in the Utah Educational
             65      Savings Plan Trust;
             66          .    renumbers and amends the individual income tax contribution provisions;
             67          .    addresses the administration of income tax contributions;
             68          .    grants rulemaking authority to:
             69              .    the State Tax Commission; and
             70              .    the Insurance Department;
             71          .    increases a state sales and use tax rate from 4.65% to 4.70%;
             72          .    provides that a .025% tax rate on certain sales and use transactions shall be
             73      deposited into the Critical Highway Needs Fund and the Transportation Investment
             74      Fund of 2005;
             75          .    provides that a .025% tax rate on certain sales and use transactions shall be
             76      deposited into the Transportation Fund to be expended to address chokepoints in
             77      construction management;
             78          .    extends the expiration date for certain sales and use tax exemptions;
             79          .    provides a sales and use tax exemption for sales of fuel to a common carrier that is a
             80      railroad for use in a locomotive engine;
             81          .    provides that state sales and use tax revenues deposited into the Transportation Fund
             82      are not appropriated into the class B and class C roads account;
             83          .    modifies the statutes creating the Transportation Investment Fund of 2005 and the
             84      Critical Highway Needs Fund to address the sources of revenue that may be
             85      deposited into the funds; and


             86          .    makes technical changes.
             87      Monies Appropriated in this Bill:
             88          None
             89      Other Special Clauses:
             90          This bill provides effective dates.
             91      Utah Code Sections Affected:
             92      AMENDS:
             93          9-4-802, as last amended by Laws of Utah 2003, Chapter 132
             94          9-4-803, as last amended by Laws of Utah 2003, Chapter 132
             95          23-14-13, as last amended by Laws of Utah 1995, Chapter 211
             96          23-14-14.1, as enacted by Laws of Utah 2003, Chapter 162
             97          26-18a-3, as last amended by Laws of Utah 1997, Chapter 1
             98          26-18a-4, as last amended by Laws of Utah 1997, Chapter 1
             99          26-48-102, as enacted by Laws of Utah 2006, Chapter 280
             100          31A-32a-101, as enacted by Laws of Utah 1999, Chapter 131
             101          31A-32a-103, as enacted by Laws of Utah 1999, Chapter 131
             102          31A-32a-104, as enacted by Laws of Utah 1999, Chapter 131
             103          31A-32a-105, as enacted by Laws of Utah 1999, Chapter 131
             104          31A-32a-106, as last amended by Laws of Utah 2001, Chapter 53
             105          31A-32a-107, as enacted by Laws of Utah 1999, Chapter 131
             106          48-2c-117, as enacted by Laws of Utah 2001, Chapter 260
             107          53B-8a-106, as last amended by Laws of Utah 2007, Chapter 100
             108          59-7-101, as last amended by Laws of Utah 2004, Chapter 54
             109          59-7-105, as last amended by Laws of Utah 2007, Chapter 100
             110          59-7-106, as last amended by Laws of Utah 2007, Chapter 100
             111          59-7-116.5, as enacted by Laws of Utah 1995, Chapter 311
             112          59-7-402, as last amended by Laws of Utah 2004, Chapter 54
             113          59-7-614, as repealed and reenacted by Laws of Utah 2007, Chapter 288


             114          59-10-103, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             115          59-10-104, as last amended by Laws of Utah 2007, Chapter 288
             116          59-10-104.1, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             117          59-10-110, as renumbered and amended by Laws of Utah 1987, Chapter 2
             118          59-10-114, as last amended by Laws of Utah 2007, Chapter 100
             119          59-10-115, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             120          59-10-116, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             121          59-10-117, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             122          59-10-118, as last amended by Laws of Utah 1995, Chapter 311
             123          59-10-119, as renumbered and amended by Laws of Utah 1987, Chapter 2
             124          59-10-120, as renumbered and amended by Laws of Utah 1987, Chapter 2
             125          59-10-121, as renumbered and amended by Laws of Utah 1987, Chapter 2
             126          59-10-122, as renumbered and amended by Laws of Utah 1987, Chapter 2
             127          59-10-123, as renumbered and amended by Laws of Utah 1987, Chapter 2
             128          59-10-124, as renumbered and amended by Laws of Utah 1987, Chapter 2
             129          59-10-125, as renumbered and amended by Laws of Utah 1987, Chapter 2
             130          59-10-126, as last amended by Laws of Utah 1995, Chapter 311
             131          59-10-201, as last amended by Laws of Utah 2007, Chapter 100
             132          59-10-201.1, as last amended by Laws of Utah 2006, Chapter 223
             133          59-10-202, as last amended by Laws of Utah 2007, Chapter 100
             134          59-10-204, as last amended by Laws of Utah 2006, Chapter 223
             135          59-10-205, as last amended by Laws of Utah 2006, Chapter 223
             136          59-10-207, as last amended by Laws of Utah 2006, Chapter 223
             137          59-10-209.1, as enacted by Laws of Utah 2006, Chapter 223
             138          59-10-210, as last amended by Laws of Utah 2006, Chapter 223
             139          59-10-507, as last amended by Laws of Utah 2003, Chapter 198
             140          59-10-1014, as last amended by Laws of Utah 2007, Chapters 122 and 288
             141          59-10-1106, as enacted by Laws of Utah 2007, Chapter 288


             142          59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
             143          59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
             144      295, and 329
             145          72-2-107, as last amended by Laws of Utah 2007, Chapter 126
             146          72-2-124, as last amended by Laws of Utah 2006, Chapters 11 and 135
             147          72-2-125, as enacted by Laws of Utah 2007, Chapter 206
             148      ENACTS:
             149          59-7-614.2, Utah Code Annotated 1953
             150          59-10-1020, Utah Code Annotated 1953
             151          59-10-1021, Utah Code Annotated 1953
             152          59-10-1022, Utah Code Annotated 1953
             153          59-10-1023, Utah Code Annotated 1953
             154          59-10-1024, Utah Code Annotated 1953
             155          59-10-1301, Utah Code Annotated 1953
             156          59-10-1302, Utah Code Annotated 1953
             157          59-10-1303, Utah Code Annotated 1953
             158          59-10-1401, Utah Code Annotated 1953
             159          59-10-1402, Utah Code Annotated 1953
             160      RENUMBERS AND AMENDS:
             161          59-10-1002.1, (Renumbered from 59-10-1016, as renumbered and amended by Laws of
             162      Utah 2006, Chapter 223)
             163          59-10-1002.2, (Renumbered from 59-10-1206.9, as enacted by Laws of Utah 2007,
             164      Chapter 288)
             165          59-10-1017, (Renumbered from 59-10-1206.1, as enacted by Laws of Utah 2007,
             166      Chapter 100)
             167          59-10-1018, (Renumbered from 59-10-1206.2, as enacted by Laws of Utah 2007,
             168      Chapter 288)
             169          59-10-1019, (Renumbered from 59-10-1206.3, as enacted by Laws of Utah 2007,


             170      Chapter 288)
             171          59-10-1304, (Renumbered from 59-10-551, as last amended by Laws of Utah 2006,
             172      Chapter 280)
             173          59-10-1305, (Renumbered from 59-10-530, as last amended by Laws of Utah 1997,
             174      Chapter 12)
             175          59-10-1306, (Renumbered from 59-10-530.5, as last amended by Laws of Utah 2003,
             176      Chapter 132)
             177          59-10-1307, (Renumbered from 59-10-549, as last amended by Laws of Utah 2005,
             178      Chapter 208)
             179          59-10-1308, (Renumbered from 59-10-550, as last amended by Laws of Utah 1997,
             180      Chapters 1 and 12)
             181          59-10-1309, (Renumbered from 59-10-550.1, as enacted by Laws of Utah 2003,
             182      Chapter 162)
             183          59-10-1310, (Renumbered from 59-10-550.2, as enacted by Laws of Utah 2006,
             184      Chapter 280)
             185          59-10-1311, (Renumbered from 59-10-547, as last amended by Laws of Utah 1998,
             186      Chapter 269)
             187          59-10-1312, (Renumbered from 59-10-548, as last amended by Laws of Utah 2002,
             188      Chapters 107 and 256)
             189          59-10-1403, (Renumbered from 59-10-301, as renumbered and amended by Laws of
             190      Utah 1987, Chapter 2)
             191          59-10-1404, (Renumbered from 59-10-302, as renumbered and amended by Laws of
             192      Utah 1987, Chapter 2)
             193          59-10-1405, (Renumbered from 59-10-303, as last amended by Laws of Utah 2006,
             194      Fourth Special Session, Chapter 2)
             195      REPEALS:
             196          59-10-206, as last amended by Laws of Utah 1995, Chapter 345
             197          59-10-801, as last amended by Laws of Utah 1997, Chapter 159


             198          59-10-1201, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 2
             199          59-10-1202, as last amended by Laws of Utah 2007, Chapters 100 and 288
             200          59-10-1203, as last amended by Laws of Utah 2007, Chapters 100 and 288
             201          59-10-1204, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 2
             202          59-10-1205, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 2
             203          59-10-1206, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 2
             204          59-10-1207, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 2
             205     
             206      Be it enacted by the Legislature of the state of Utah:
             207          Section 1. Section 9-4-802 is amended to read:
             208           9-4-802. Purposes of Homeless Coordinating Committee -- Uses of Pamela
             209      Atkinson Homeless Trust Account.
             210          (1) (a) The Homeless Coordinating Committee shall work to ensure that services
             211      provided to the homeless by state agencies, local governments, and private organizations are
             212      provided in a cost-effective manner.
             213          (b) Programs funded by the committee shall emphasize emergency housing and
             214      self-sufficiency, including placement in meaningful employment or occupational training
             215      activities and, where needed, special services to meet the unique needs of the homeless who
             216      have families with children, or who are mentally ill, disabled, or suffer from other serious
             217      challenges to employment and self-sufficiency.
             218          (c) The committee may also fund treatment programs to ameliorate the effects of
             219      substance abuse or a disability.
             220          (2) The committee members designated in Subsection 9-4-801 (2) shall:
             221          (a) award contracts funded by the Pamela Atkinson Homeless Trust Account with the
             222      advice and input of those designated in Subsection 9-4-801 (3);
             223          (b) consider need, diversity of geographic location, coordination with or enhancement
             224      of existing services, and the extensive use of volunteers; and
             225          (c) give priority for funding to programs that serve the homeless who are mentally ill


             226      and who are in families with children.
             227          (3) (a) In any fiscal year, no more than 80% of the funds in the Pamela Atkinson
             228      Homeless Trust Account may be allocated to organizations that provide services only in Salt
             229      Lake, Davis, Weber, and Utah Counties.
             230          (b) The committee may:
             231          (i) expend up to 3% of its annual appropriation for administrative costs associated with
             232      the allocation of funds from the Pamela Atkinson Homeless Trust Account, and up to 2% of its
             233      annual appropriation for marketing the account and soliciting donations to the account; and
             234          (ii) pay for the initial costs of the State Tax Commission in implementing Section
             235      [ 59-10-530.5 ] 59-10-1306 from the account.
             236          (4) (a) The committee may not expend, except as provided in Subsection (4)(b), an
             237      amount equal to the greater of $50,000 or 20% of the amount donated to the Pamela Atkinson
             238      Homeless Trust Account during fiscal year 1988-89.
             239          (b) If there are decreases in contributions to the account, the committee may expend
             240      funds held in reserve to provide program stability, but the committee shall reimburse the
             241      amounts of those expenditures to the reserve fund.
             242          (5) The committee shall make an annual report to the Economic Development and
             243      Human Resources Appropriations Subcommittee regarding the programs and services funded
             244      by contributions to the Pamela Atkinson Homeless Trust Account.
             245          (6) The moneys in the Pamela Atkinson Homeless Trust Account shall be invested by
             246      the state treasurer according to the procedures and requirements of Title 51, Chapter 7, State
             247      Money Management Act, except that all interest or other earnings derived from the fund
             248      moneys shall be deposited in the fund.
             249          Section 2. Section 9-4-803 is amended to read:
             250           9-4-803. Creation of Pamela Atkinson Homeless Trust Account.
             251          (1) There is created a restricted account within the General Fund to be known as the
             252      Pamela Atkinson Homeless Trust Account.
             253          (2) Private contributions received under this section and Section [ 59-10-530.5 ]


             254      59-10-1306 shall be deposited into the account to be used only for programs described in
             255      Section 9-4-802 .
             256          (3) Money shall be appropriated from the account to the State Homeless Coordinating
             257      Committee in accordance with the Utah Budgetary Procedures Act.
             258          (4) The State Homeless Coordinating Committee may accept transfers, grants, gifts,
             259      bequests, or any money made available from any source to implement this part.
             260          Section 3. Section 23-14-13 is amended to read:
             261           23-14-13. Wildlife Resources Account.
             262          (1) The Wildlife Resources Account [within the General Fund] is established within the
             263      General Fund.
             264          (2) The following monies shall be deposited into the Wildlife Resources Account:
             265          (a) revenue from the sale of licenses, permits, tags, and certificates of registration issued
             266      under this title or a rule or proclamation of the Wildlife Board, except as otherwise provided by
             267      this title;
             268          (b) revenue from the sale, lease, rental, or other granting of rights of real or personal
             269      property acquired with revenue specified in Subsection (2)(a);
             270          (c) revenue from fines and forfeitures for violations of this title or any rule,
             271      proclamation, or order of the Wildlife Board, minus court costs not to exceed the schedule
             272      adopted by the Judicial Council;
             273          (d) funds appropriated from the General Fund by the Legislature pursuant to Section
             274      23-19-39 ;
             275          (e) other monies received by the division under any provision of this title, except as
             276      otherwise provided by this title; [and]
             277          (f) contributions made in accordance with Section 59-10-1305 ; and
             278          [(f)] (g) interest, dividends, or other income earned on account monies.
             279          (3) Monies in the Wildlife Resources Account shall be used for the administration of
             280      this title.
             281          Section 4. Section 23-14-14.1 is amended to read:


             282           23-14-14.1. Wolf Depredation and Management Restricted Account -- Interest --
             283      Use of contributions and interest.
             284          (1) There is created within the General Fund the Wolf Depredation and Management
             285      Restricted Account.
             286          (2) The account shall be funded by contributions deposited into the Wolf Depredation
             287      and Management Restricted Account in accordance with Section [ 59-10-550.1 ] 59-10-1309 .
             288          (3) (a) The Wolf Depredation and Management Restricted Account shall earn interest.
             289          (b) Interest earned on the Wolf Depredation and Management Restricted Account shall
             290      be deposited into the Wolf Depredation and Management Restricted Account.
             291          (4) (a) Subject to Subsection (4)(b), contributions and interest deposited into the Wolf
             292      Depredation and Management Restricted Account shall be used by the Division of Wildlife
             293      Resources for:
             294          (i) payments for livestock depredation by wolves; or
             295          (ii) wolf management.
             296          (b) Contributions and interest deposited into the Wolf Depredation and Management
             297      Restricted Account may be used for the purposes described in Subsection (4)(a) only to the
             298      extent permitted by federal law.
             299          Section 5. Section 26-18a-3 is amended to read:
             300           26-18a-3. Purpose of committee.
             301          (1) The committee shall work to:
             302          (a) provide financial assistance for initial medical expenses of children who need organ
             303      transplants;
             304          (b) obtain the assistance of volunteer and public service organizations; and
             305          (c) fund activities as the committee designates for the purpose of educating the public
             306      about the need for organ donors.
             307          (2) (a) The committee is responsible for awarding financial assistance funded by the
             308      trust account.
             309          (b) The financial assistance awarded by the committee under Subsection (1)(a) shall be


             310      in the form of interest free loans. The committee may establish terms for repayment of the
             311      loans, including a waiver of the requirement to repay any awards if, in the committee's
             312      judgment, repayment of the loan would impose an undue financial burden on the recipient.
             313          (c) In making financial awards under Subsection (1)(a), the committee shall consider:
             314          (i) need;
             315          (ii) coordination with or enhancement of existing services or financial assistance,
             316      including availability of insurance or other state aid;
             317          (iii) the success rate of the particular organ transplant procedure needed by the child;
             318      and
             319          (iv) the extent of the threat to the child's life without the organ transplant.
             320          (3) The committee may only provide the assistance described in this section to children
             321      who have resided in Utah, or whose legal guardians have resided in Utah for at least six months
             322      prior to the date of assistance under this section.
             323          (4) (a) The committee may expend up to 5% of its annual appropriation for
             324      administrative costs associated with the allocation of funds from the trust account.
             325          (b) The administrative costs shall be used for the costs associated with staffing the
             326      committee and for State Tax Commission costs in implementing Section [ 59-10-550 ]
             327      59-10-1308 .
             328          (5) The committee shall make an annual report to the Health and Human Services
             329      Appropriations Subcommittee regarding the programs and services funded by contributions to
             330      the trust account.
             331          Section 6. Section 26-18a-4 is amended to read:
             332           26-18a-4. Creation of Kurt Oscarson Children's Organ Transplant Trust
             333      Account.
             334          (1) There is created a restricted account within the General Fund pursuant to Section
             335      51-5-4 known as the Kurt Oscarson Children's Organ Transplant Trust Account. Private
             336      contributions received under this section and Section [ 59-10-550 ] 59-10-1308 shall be
             337      deposited into the trust account to be used only for the programs and purposes described in


             338      Section 26-18a-3 .
             339          (2) Money shall be appropriated from the trust account to the committee in accordance
             340      with Title 63, Chapter 38, Budgetary Procedures Act.
             341          (3) In addition to funds received under Section [ 59-10-550 ] 59-10-1308 , the committee
             342      may accept transfers, grants, gifts, bequests, or any money made available from any source to
             343      implement this chapter.
             344          Section 7. Section 26-48-102 is amended to read:
             345           26-48-102. Cat and Dog Community Spay and Neuter Program Restricted
             346      Account -- Interest -- Use of contributions and interest.
             347          (1) There is created within the General Fund the Cat and Dog Community Spay and
             348      Neuter Program Restricted Account.
             349          (2) The account shall be funded by contributions deposited into the Cat and Dog
             350      Community Spay and Neuter Program Restricted Account in accordance with Section
             351      [ 59-10-550.2 ] 59-10-1310 .
             352          (3) (a) The Cat and Dog Community Spay and Neuter Program Restricted Account
             353      shall earn interest.
             354          (b) Interest earned on the Cat and Dog Community Spay and Neuter Program
             355      Restricted Account shall be deposited into the Cat and Dog Community Spay and Neuter
             356      Program Restricted Account.
             357          (4) The department shall distribute contributions and interest deposited into the Cat and
             358      Dog Community Spay and Neuter Program Restricted Account to one or more organizations
             359      that:
             360          (a) are exempt from federal income taxation under Section 501(c)(3), Internal Revenue
             361      Code;
             362          (b) operate a mobile spay and neuter clinic for cats and dogs;
             363          (c) provide annual spay and neuter services at the mobile spay and neuter clinic
             364      described in Subsection (4)(b):
             365          (i) to one or more communities in at least 20 counties in the state; and


             366          (ii) by veterinarians who are licensed by Title 58, Chapter 28, Veterinary Practice Act;
             367      and
             368          (d) (i) spay and neuter cats and dogs owned by persons having low incomes; and
             369          (ii) have established written guidelines for determining what constitutes a person having
             370      a low income in accordance with any rules made by the department as authorized by Subsection
             371      (5)(c).
             372          (5) (a) An organization described in Subsection (4) may apply to the department to
             373      receive a distribution in accordance with Subsection (4).
             374          (b) An organization that receives a distribution from the department in accordance with
             375      Subsection (4):
             376          (i) shall expend the distribution only to spay or neuter dogs and cats:
             377          (A) owned by persons having low incomes;
             378          (B) by veterinarians who are licensed by Title 58, Chapter 28, Veterinary Practice Act;
             379          (C) through a statewide voucher program; and
             380          (D) at a location that:
             381          (I) is not a mobile spay and neuter clinic; and
             382          (II) does not receive any funding from a governmental entity; and
             383          (ii) may not expend the distribution for any administrative cost relating to an
             384      expenditure authorized by Subsection (5)(b)(i).
           &nbs