S.B. 198

1

CORPORATE FRANCHISE AND INCOME
2 TAXES - RATE INCREASE
3 2000 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Ron Allen
6 AN ACT RELATING TO CORPORATE FRANCHISE AND INCOME TAXES; INCREASING
7 THE CORPORATE FRANCHISE AND INCOME TAX RATES; AND PROVIDING AN
8 EFFECTIVE DATE.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 59-7-104, as repealed and reenacted by Chapter 169, Laws of Utah 1993
12 59-7-201, as last amended by Chapter 169, Laws of Utah 1993
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 59-7-104 is amended to read:
15 59-7-104. Tax -- Minimum tax.
16 (1) Each domestic and foreign corporation, except those exempted under Section 59-7-102 ,
17 shall pay an annual tax to the state based on its Utah taxable income for the taxable year for the
18 privilege of exercising its corporate franchise or for the privilege of doing business in the state.
19 (2) The tax shall be [5%] 6% of a corporation's Utah taxable income.
20 (3) The minimum tax a corporation shall pay under this chapter is $100.
21 Section 2. Section 59-7-201 is amended to read:
22 59-7-201. Tax -- Minimum tax.
23 (1) There is imposed upon each corporation except those exempt under Section 59-7-102
24 for each taxable year, a tax upon its Utah taxable income derived from sources within this state
25 other than income for any period which the corporation is required to include in its tax base under
26 Section 59-7-104 .
27 (2) The tax imposed by Subsection (1) shall be [5%] 6% of a corporation's Utah taxable

28 income.
29 (3) In no case shall the tax be less than $100.
30 Section 3. Effective date.
31 This act takes effect for taxable years beginning on or after January 1, 2001.




Legislative Review Note
as of 1-28-00 4:21 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel