S.B. 139

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Senate Committee Amendments 2-4-2004 rd/rlr This document includes Senate Committee Amendments incorporated into the bill on Wed, Feb 4, 2004 at 11:12 AM by rday. --> 1

INDIVIDUAL INCOME TAX - NONRESIDENT
2 INCOME AMENDMENTS
3 2004 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Curtis S. Bramble
6
7 LONG TITLE
8 General Description:
9 This bill amends the Individual Income Tax Act.
10 Highlighted Provisions:
11 This bill:
12 . provides S AND MODIFIES s definitions;
13 . provides that compensation a nonresident servicemember receives for military
14 service is subtracted from income for purposes of calculating the nonresident
15 servicemember's state individual income tax;
16 . grants rulemaking authority to the State Tax Commission; and
17 . makes technical changes.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill has retrospective operation for taxable years beginning on or after January 1,
22 2004.
23 Utah Code Sections Affected:
24 AMENDS:
25 59-10-116, as last amended by Chapter 323, Laws of Utah 2001
26
27 Be it enacted by the Legislature of the state of Utah:

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Senate Committee Amendments 2-4-2004 rd/rlr 28

Section 1. Section 59-10-116 is amended to read:
29 59-10-116. Tax on nonresident S [ individual's state taxable income ] INDIVIDUAL s --
29a Calculation --
30 Exemption.
31 (1) For purposes of this section:
32 (a) "military service" is as defined in Pub. L. No. 108-189, Sec. 101;
33 (b) "servicemember" is as defined in Pub. L. No. 108-189, Sec. 101;
34 [(a)] (c) "state income tax percentage" means a percentage equal to a nonresident
35 individual's federal adjusted gross income for the taxable year received from Utah sources, as
36 determined under Section 59-10-117 , divided by the difference between:
37 (i) the nonresident individual's total federal adjusted gross income for that taxable year;
38 and
39 (ii) if the nonresident individual described in Subsection (1)(c)(i) is a servicemember,
40 the compensation the servicemember receives for military service if the servicemember is S [ :
41 (A) a nonresident; and
42 (B) ] s serving in compliance with military orders; and
43 [(b)] (d) " UNAPPORTIONED state S [ taxable income ] TAX s " means the product of the:
44 (i) difference between:
45 (A) a nonresident individual's[: (i)] federal taxable income, as defined in Section
46 59-10-111 , with the modifications, subtractions, and adjustments provided for in Section
47 59-10-114 ; and
48 (B) if the nonresident individual described in Subsection (1)(d)(i)(A) is a
49 servicemember, compensation the servicemember receives for military service if the
50 servicemember is S [ :
51 (I) a nonresident; and
52 (II) ] s serving in compliance with military orders; and
53 (ii) tax S RATE s imposed under Section 59-10-104 .
54 (2) S [ (a) ] s Except as provided in Subsection (3), a tax is imposed S [ as provided in this
55 section on the state taxable income calculated under this section of ] ON s a nonresident individual S [ .
56 (b) The tax under this section shall be calculated by multiplying ] IN AN AMOUNT EQUAL TO
56a THE PRODUCT OF s the nonresident
57 individual's S :
57a (a) UNAPPORTIONED s state S [ taxable income by the nonresident individual's ] TAX; AND
57b (b) s state income tax percentage.
58 (3) This section does not apply to a nonresident individual exempt from taxation under

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60 (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
61 purposes of Subsection (1)(d)(i)(B), the commission may by rule define what constitutes
62 compensation.
63 Section 2. Retrospective operation.
64 This bill has retrospective operation for taxable years beginning on or after January 1,
65 2004.

Legislative Review Note
as of 1-23-04 3:41 PM

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

Office of Legislative Research and General Counsel