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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.


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