First Substitute S.B. 36

Representative Carl R. Saunders proposes to substitute the following bill:

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, making
8 adjustments to the individual income tax brackets and amounts of tax, and making technical
9 changes. This act has retrospective operation for taxable years beginning on or after January
10 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)] For taxable years beginning on or after January 1, [1997] 2001, a tax is imposed on
51 the state taxable income, as defined in Section 59-10-112 , of every resident individual as [follows:]
52 provided in this section.
53 [(a)] (1) For an individual, other than a husband and wife or head of household required
54 to use the tax table under Subsection (2)[(b)], the tax under this section is imposed in accordance
55 with the following table:
56 If the state taxable income is: The tax is:

57 Less than or equal to [$750] $863 2.3% of the state taxable income
58 Greater than [$750] $863 but less than or equal [$17] $20, plus 3.3% of state taxable
59 to [$1,500] $1,726 income greater than [$750] $863
60 Greater than [$1,500] $1,726 but less than or equal [$42] $48, plus 4.2% of state taxable
61 to [$2,250] $2,588 income greater than [$1,500] $1,726
62 Greater than [$2,250] $2,588 but less than or equal [$74] $85, plus 5.2% of state taxable
63 to [$3,000] $3,450 income greater than [$2,250] $2,588
64 Greater than [$3,000] $3,450 but less than or equal [$113] $129, plus 6% of state taxable
65 to $[3,750] $4,313 income greater than [$3,000] $3,450
66 Greater than [$3,750] $4,313 [$158] $181, plus 7% of state taxable
67 income greater than [$3,750] $4,313
68 [(b)] (2) For a husband and wife filing a single return jointly, or a head of household as
69 defined in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is
70 imposed in accordance with the following table:
71 If the state taxable income is: The tax is:
72 Less than or equal to [$1,500] $1,726 2.3% of the state taxable income
73 Greater than [$1,500] $1,726 but less than or equal [$35] $40, plus 3.3% of state taxable
74 to [$3,000] $3,450 income greater than [$1,500] $1,726
75 Greater than [$3,000] $3,450 but less than or equal [$84] $97, plus 4.2% of state taxable
76 to [$4,500] $5,176 income greater than [$3,000] $3,450
77 Greater than [$4,500] $5,176 but less than or equal [$147] $169, plus 5.2% of state
78 to [$6,000] $6,900 taxable income greater than
79 [$4,500] $5,176
80 Greater than [$6,000] $6,900 but less than or equal [$225] $259, plus 6% of state taxable
81 to [$7,500] $8,626 income greater than [$6,000] $6,900
82 Greater than [$7,500] $8,626 [$315] $362, plus 7% of state taxable
83 income greater than [$7,500] $8,626
84 Section 2. Retrospective operation.
85 This act has retrospective operation for taxable years beginning on or after January 1, 2001.