H.B. 217

1

INCOME TAX REVISIONS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Carl Wimmer
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends the Corporate Franchise and Income Taxes chapter and the Individual
10 Income Tax Act to reduce income tax rates.
11 Highlighted Provisions:
12 This bill:
13 . reduces tax rates under the Corporate Franchise and Income Taxes chapter and the
14 Individual Income Tax Act from 5% to 4.75%; and
15 . makes technical and conforming changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill takes effect for a taxable year beginning on or after January 1, 2011.
20 Utah Code Sections Affected:
21 AMENDS:
22 59-7-104, as repealed and reenacted by Laws of Utah 1993, Chapter 169
23 59-7-201, as last amended by Laws of Utah 1993, Chapter 169
24 59-10-104, as last amended by Laws of Utah 2008, Chapter 389
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-7-104 is amended to read:

28 59-7-104. Tax -- Minimum tax.
29 (1) [Each domestic and] For a taxable year, a domestic corporation or a foreign
30 corporation, except [those exempted] for a domestic corporation or foreign corporation exempt
31 under Section 59-7-102 , shall pay [an annual tax to the state based on its] a tax on the domestic
32 corporation's or foreign corporation's Utah taxable income [for the taxable year] for the
33 privilege of:
34 (a) exercising [its] the domestic corporation's or foreign corporation's corporate
35 franchise; or [for the privilege of]
36 (b) doing business in the state.
37 (2) The tax [shall be 5% of a] is 4.75% of a domestic corporation's or foreign
38 corporation's Utah taxable income.
39 (3) The minimum tax a domestic corporation or foreign corporation shall pay under
40 this chapter is $100.
41 Section 2. Section 59-7-201 is amended to read:
42 59-7-201. Tax -- Minimum tax.
43 (1) [There] For a taxable year, there is imposed upon [each] a corporation except
44 [those] for a corporation exempt under Section 59-7-102 [for each taxable year], a tax upon
45 [its] the corporation's Utah taxable income derived from sources within this state other than
46 income for any period [which] that the corporation is required to include in its tax base under
47 Section 59-7-104 .
48 (2) The tax imposed by Subsection (1) [shall be 5%] is 4.75% of a corporation's Utah
49 taxable income.
50 (3) [In no case shall the tax] A tax under this section may not be less than $100.
51 Section 3. Section 59-10-104 is amended to read:
52 59-10-104. Tax basis -- Tax rate -- Exemption.
53 (1) [For taxable years beginning on or after January 1, 2008, a] A tax is imposed on the
54 state taxable income of a resident individual as provided in this section.
55 (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
56 product of:
57 (a) the resident individual's state taxable income for that taxable year; and
58 (b) [5%] 4.75%.

59 (3) This section does not apply to a resident individual exempt from taxation under
60 Section 59-10-104.1 .
61 Section 4. Effective date.
62 This bill takes effect for a taxable year beginning on or after January 1, 2011.




Legislative Review Note
as of 1-6-10 10:08 AM

Office of Legislative Research and General Counsel