S.B. 36

1

INDIVIDUAL INCOME TAX - BRACKET
2 ADJUSTMENTS
3 2001 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: John L. Valentine
6 Lyle W. Hillyard
Millie M. Peterson
Howard A. Stephenson

7 This act modifies the Individual Income Tax Act by repealing obsolete language, requiring
8 the State Tax Commission to make certain adjustments to the individual income tax brackets
9 and amounts of tax, and making technical changes. This act has retrospective operation for
10 taxable years beginning on or after January 1, 2001.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 59-10-104, as last amended by Chapter 333, Laws of Utah 1996
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 59-10-104 is amended to read:
16 59-10-104. Tax basis -- Rates.
17 [(1) For taxable years beginning on or after January 1, 1996, but beginning before January
18 1, 1997, a tax is imposed on the state taxable income, as defined in Section 59-10-112 , of every
19 resident individual as follows:]
20 [(a) For an individual, other than a husband and wife or head of household required to use
21 the tax table under Subsection (1)(b), the tax under this section is imposed in accordance with the
22 following table:]
23 [If the state taxable income is:] [The tax is:]
24 [Less than or equal to $750] [2.55% of the state taxable income]
25 [Greater than $750 but less than or equal] [$19, plus 3.5% of state taxable income]
26 [to $1,500] [greater than $750]
27 [Greater than $1,500 but less than or equal] [$45, plus 4.4% of state taxable income]

28 [to $2,250] [greater than $1,500]
29 [Greater than $2,250 but less than or equal] [$78, plus 5.35% of state taxable income]
30 [to $3,000] [greater than $2,250]
31 [Greater than $3,000 but less than or equal] [$119, plus 6% of state taxable income]
32 [to $3,750] [greater than $3,000]
33 [Greater than $3,750] [$164, plus 7% of state taxable income]
34 [greater than $3,750]
35 [(b) For a husband and wife filing a single return jointly, or a head of household as defined
36 in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is imposed
37 in accordance with the following table:]
38 [If the state taxable income is:] [The tax is:]
39 [Less than or equal to $1,500] [2.55% of the state taxable income]
40 [Greater than $1,500 but less than or equal] [$38, plus 3.5% of state taxable income]
41 [to $3,000] [greater than $1,500]
42 [Greater than $3,000 but less than or equal] [$91, plus 4.4% of state taxable income]
43 [to $4,500] [greater than $3,000]
44 [Greater than $4,500 but less than or equal] [$157, plus 5.35% of state taxable income]
45 [to $6,000] [greater than $4,500]
46 [Greater than $6,000 but less than or equal] [$237, plus 6% of state taxable income]
47 [to $7,500] [greater than $6,000]
48 [Greater than $7,500] [$327, plus 7% of state taxable income]
49 [greater than $7,500]
50 [(2)] (1) For taxable years beginning on or after January 1, 1997, a tax is imposed on the
51 state taxable income, as defined in Section 59-10-112 , of every resident individual as follows:
52 (a) For an individual, other than a husband and wife or head of household required to use
53 the tax table under Subsection [(2)] (1)(b), the tax under this section is imposed in accordance with
54 the following table:
55 If the state taxable income is: The tax is:
56 Less than or equal to $750 2.3% of the state taxable income
57 Greater than $750 but less than or equal $17, plus 3.3% of state taxable income
58 to $1,500 greater than $750

59 Greater than $1,500 but less than or equal $42, plus 4.2% of state taxable income
60 to $2,250 greater than $1,500
61 Greater than $2,250 but less than or equal $74, plus 5.2% of state taxable income
62 to $3,000 greater than $2,250
63 Greater than $3,000 but less than or equal $113, plus 6% of state taxable income
64 to $3,750 greater than $3,000
65 Greater than $3,750 $158, plus 7% of state taxable income
66 greater than $3,750
67 (b) For a husband and wife filing a single return jointly, or a head of household as defined
68 in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is imposed
69 in accordance with the following table:
70 If the state taxable income is: The tax is:
71 Less than or equal to $1,500 2.3% of the state taxable income
72 Greater than $1,500 but less than or equal $35, plus 3.3% of state taxable income
73 to $3,000 greater than $1,500
74 Greater than $3,000 but less than or equal $84, plus 4.2% of state taxable income
75 to $4,500 greater than $3,000
76 Greater than $4,500 but less than or equal $147, plus 5.2% of state taxable income
77 to $6,000 greater than $4,500
78 Greater than $6,000 but less than or equal $225, plus 6% of state taxable income
79 to $7,500 greater than $6,000
80 Greater than $7,500 $315, plus 7% of state taxable income
81 greater than $7,500
82 (2) (a) For taxable years beginning on or after January 1, 2001, the commission shall:
83 (i) make the following adjustments to the individual income tax brackets under Subsection
84 (1)(b):
85 (A) increase or decrease the individual income tax brackets under Subsection (1)(b) in a
86 percentage equal to the percentage difference between the consumer price index for the preceding
87 calendar year and the consumer price index for calendar year 1999; and
88 (B) after making an increase or decrease under Subsection (2)(a)(i)(A), round the
89 individual income tax brackets under Subsection (1)(b) to the nearest $100;

90 (ii) after making the adjustments described in Subsection (2)(a)(i) to the individual income
91 tax brackets under Subsection (1)(b), adjust the individual income tax brackets under Subsection
92 (1)(a) such that for each individual income tax bracket under Subsection (1)(b), there is a
93 corresponding individual income tax bracket under Subsection (1)(a) that is equal to 50% of each
94 individual income tax bracket under Subsection (1)(b); and
95 (iii) to the extent necessary to reflect an adjustment under Subsection (2)(a)(i) or (ii),
96 increase or decrease the amount of tax under Subsections (1)(a) and (b) prior to adding in the
97 portion of the tax calculated as a percentage of state taxable income.
98 (b) The commission may not increase or decrease the rate percentages provided in
99 Subsection (1)(a) or (b).
100 (c) For purposes of Subsection (2)(a)(i), the commission shall calculate the consumer price
101 index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
102 Section 2. Retrospective operation.
103 This act has retrospective operation for taxable years beginning on or after January 1, 2001.




Legislative Review Note
as of 11-14-00 10:01 AM

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

Office of Legislative Research and General Counsel

Committee Note

The Revenue and Taxation Interim Committee recommended this bill.