S.B. 270

1

INDIVIDUAL INCOME TAX REVISIONS
2 2006 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Thomas V. Hatch
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies tax rates under the Individual Income Tax Act.
10 Highlighted Provisions:
11 This bill:
12 . modifies tax rates under the Individual Income Tax Act; and
13 . makes technical changes.
14 Monies Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 This bill takes effect for taxable years beginning on or after January 1, 2007.
18 Utah Code Sections Affected:
19 AMENDS:
20 59-10-104, as last amended by Chapters 323 and 324, Laws of Utah 2001
21
22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 59-10-104 is amended to read:
24 59-10-104. Tax basis -- Rates -- Exemption.
25 (1) Except as provided in Subsection (4), for taxable years beginning on or after
26 January 1, [2001] 2007, a tax is imposed on the state taxable income, as defined in Section
27 59-10-112 , of every resident individual as provided in this section.

28 (2) For an individual, other than a husband and wife or head of household required to
29 use the tax table under Subsection (3), the tax under this section is imposed in accordance with
30 the following table:
31 If the state taxable income is: The tax is:
32 Less than or equal to $863 [2.3%] 2.21% of the state taxable income
33 Greater than $863 but less than or equal [$20] $19, plus [3.3%] 3.17% of state
34 to $1,726 taxable income greater than $863
35 Greater than $1,726 but less than or equal [$48] $46, plus [4.2%] 4.03% of state
36 to $2,588 taxable income greater than $1,726
37 Greater than $2,588 but less than or equal [$85] $81, plus [5.2%] 4.99% of state
38 to $3,450 taxable income greater than $2,588
39 Greater than $3,450 but less than or equal [$129] $124, plus [6%] 5.76% of state
40 to $4,313 taxable income greater than $3,450
41 Greater than $4,313 [$181] $174, plus [7%] 6.72% of state
42 taxable income greater than $4,313
43 (3) For a husband and wife filing a single return jointly, or a head of household as
44 defined in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section
45 is imposed in accordance with the following table:
46 If the state taxable income is: The tax is:
47 Less than or equal to $1,726 [2.3%] 2.21% of the state taxable income
48 Greater than $1,726 but less than or equal [$40] $38, plus [3.3%] 3.17% of state
49 to $3,450 taxable income greater than $1,726
50 Greater than $3,450 but less than or equal [$97] $93, plus [4.2%] 4.03% of state
51 to $5,176 taxable income greater than $3,450
52 Greater than $5,176 but less than or equal [$169] $162, plus [5.2%] 4.99% of state
53 to $6,900 taxable income greater than $5,176
54 Greater than $6,900 but less than or equal [$259] $248, plus [6%] 5.76% of state
55 to $8,626 taxable income greater than $6,900
56 Greater than $8,626 [$362] $348, plus [7%] 6.72% of state
57 taxable income greater than $8,626
58 (4) This section does not apply to a resident individual exempt from taxation under

59 Section 59-10-104.1 .
60 Section 2. Effective date.
61 This bill takes effect for taxable years beginning on or after January 1, 2007.




Legislative Review Note
as of 2-10-06 12:44 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel