H.B. 57

This document includes House Committee Amendments incorporated into the bill on Tue, Jan 27, 2009 at 12:10 PM by ddonat. --> 1

EXEMPTIONS FROM REQUIREMENTS TO
2 DEDUCT AND WITHHOLD AN INCOME TAX
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Craig A. Frank
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 Committee Note:
10 The Revenue and Taxation Interim Committee recommended this bill.
11 General Description:
12 This bill amends the Withholding of Tax part to address exemptions from the
13 requirements to deduct and withhold an income tax.
14 Highlighted Provisions:
15 This bill:
16 . provides an exemption from the requirement for an employer to deduct and
17 withhold an income tax if certain requirements are met relating to:
18 . the number of days an employee performed or is expected to perform services in
19 the state in certain taxable years; and
20 . the amount of wages an employee received or is expected to receive in certain
21 taxable years;
22 . grants rulemaking authority to the State Tax Commission; and
23 . makes technical changes.
24 Monies Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 H. [ None ] This bill has retrospective operation for a taxable year beginning on or
27a after January 1, 2009. .H

28 Utah Code Sections Affected:
29 AMENDS:
30 59-10-403, as renumbered and amended by Laws of Utah 1987, Chapter 2
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-10-403 is amended to read:
34 59-10-403. Exemptions from employer requirement to deduct and withhold a tax
35 -- Rulemaking authority.
36 (1) Notwithstanding any other provision of this chapter, an employer is not required to
37 deduct and withhold any tax under this chapter upon a payment of wages to an employee:
38 (a) if there is in effect with respect to [such] that payment a withholding exemption
39 certificate [(in such form and containing such other information as the commission may
40 prescribe)] furnished to the employer by the employee, certifying that the employee:
41 [(a)] (i) incurred no liability for [income] a tax imposed under this chapter for [his] the
42 employee's immediately preceding taxable year; and
43 [(b) anticipates that he will incur no liability for income]
44 (ii) expects that the employee will not incur liability for a tax imposed under this
45 chapter for [his] the employee's current taxable year[.]; or
46 (b) if:
47 (i) the employer expects the employee to perform services in the state for that employer
48 for less than 20 days in the employer's current taxable year;
49 (ii) the employee performed services in the state for that employer for less than 20 days
50 in the employer's previous taxable year;
51 (iii) the employer expects that the employee will receive wages derived from or
52 connected with Utah sources from that employer of less than $50,000 in the employer's current
53 taxable year; and
54 (iv) the employee received wages derived from or connected with Utah sources from
55 that employer of less than $50,000 in the employer's previous taxable year.
56 (3) The commission shall prescribe:
57 (a) the form for the exemption certificate described in Subsection (1)(a); and
58 (b) the information required to be reported on the exemption certificate described in

59 Subsection (1)(a).
60 [(2) The commission shall by rule]
61 (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
62 commission:
63 (a) shall provide for the coordination of the provisions of this section with the
64 provisions of Section 59-10-402 [.]; and
65 (b) may provide procedures for determining whether an employee's wages are derived
66 from or connected with Utah sources.
66a H. Section 2. Retrospective operation.
66b This bill has retrospective operation for a taxable year beginning on or after January 1,
66c 2009. .H




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as of 11-25-08 3:26 PM

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