Second Substitute H.B. 323

Senator Thomas V. Hatch proposes the following substitute bill:

1 INDIVIDUAL INCOME TAX RATE
2 REDUCTION
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: James A. Ferrin
6 Senate Sponsor: Thomas V. Hatch
7
8 LONG TITLE
9 General Description:
10 This bill modifies tax rates under the Individual Income Tax Act.
11 Highlighted Provisions:
12 This bill:
13 . modifies tax rates under the Individual Income Tax Act; and
14 . makes technical changes.
15 Monies Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 This bill takes effect for taxable years beginning on or after January 1, 2007.
19 Utah Code Sections Affected:
20 AMENDS:
21 59-10-104, as last amended by Chapters 323 and 324, Laws of Utah 2001
22
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 59-10-104 is amended to read:
25 59-10-104. Tax basis -- Rates -- Exemption.

26 (1) Except as provided in Subsection (4), for taxable years beginning on or after
27 January 1, [2001] 2007, a tax is imposed on the state taxable income, as defined in Section
28 59-10-112 , of every resident individual as provided in this section.
29 (2) For an individual, other than a husband and wife or head of household required to
30 use the tax table under Subsection (3), the tax under this section is imposed in accordance with
31 the following table:
32 If the state taxable income is: The tax is:
33 Less than or equal to $863 [2.3%] 2.21% of the state taxable income
34 Greater than $863 but less than or equal [$20] $19, plus [3.3%] 3.17% of state
35 to $1,726 taxable income greater than $863
36 Greater than $1,726 but less than or equal [$48] $46, plus [4.2%] 4.03% of state
37 to $2,588 taxable income greater than $1,726
38 Greater than $2,588 but less than or equal [$85] $81, plus [5.2%] 4.99% of state
39 to $3,450 taxable income greater than $2,588
40 Greater than $3,450 but less than or equal [$129] $124, plus [6%] 5.76% of state
41 to $4,313 taxable income greater than $3,450
42 Greater than $4,313 [$181] $174, plus [7%] 6.72% of state
43 taxable income greater than $4,313
44 (3) For a husband and wife filing a single return jointly, or a head of household as
45 defined in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section
46 is imposed in accordance with the following table:
47 If the state taxable income is: The tax is:
48 Less than or equal to $1,726 [2.3%] 2.21% of the state taxable income
49 Greater than $1,726 but less than or equal [$40] $38, plus [3.3%] 3.17% of state
50 to $3,450 taxable income greater than $1,726
51 Greater than $3,450 but less than or equal [$97] $93, plus [4.2%] 4.03% of state
52 to $5,176 taxable income greater than $3,450
53 Greater than $5,176 but less than or equal [$169] $162, plus [5.2%] 4.99% of state
54 to $6,900 taxable income greater than $5,176
55 Greater than $6,900 but less than or equal [$259] $248, plus [6%] 5.76% of state
56 to $8,626 taxable income greater than $6,900

57 Greater than $8,626 [$362] $348, plus [7%] 6.72% of state
58 taxable income greater than $8,626
59 (4) This section does not apply to a resident individual exempt from taxation under
60 Section 59-10-104.1 .
61 Section 2. Effective date.
62 This bill takes effect for taxable years beginning on or after January 1, 2007.