H.B. 20

1

REPEAL OF CERTAIN INCOME TAX
2 CREDITS AND CONTRIBUTIONS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Julie Fisher
6 Senate Sponsor: Wayne L. Niederhauser
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 Individual Income Tax Act and related provisions to repeal certain
13 income tax credits and contributions.
14 Highlighted Provisions:
15 This bill:
16 . repeals the income tax targeted jobs tax credit for individuals, estates, and trusts;
17 . repeals the individual income tax contributions for:
18 . the Utah College of Applied Technology; and
19 . the Wolf Depredation and Management Restricted Account;
20 . provides that contributions and interest remaining on June 30, 2009 in the Wolf
21 Depredation and Management Restricted Account shall be deposited into the
22 Agricultural and Wildlife Damage Prevention Account;
23 . modifies the sources of funding for the Agricultural Wildlife Damage Prevention
24 Account to include contributions and interest remaining on June 30, 2009 in the
25 Wolf Depredation and Management Restricted Account;
26 . provides repeal dates for provisions relating to:
27 . the Wolf Depredation and Management Restricted Account; and

28 . contributions and interest remaining on June 30, 2009 in the Wolf Depredation
29 and Management Restricted Account that are deposited into the Agricultural and
30 Wildlife Damage Prevention Account; and
31 . makes technical changes.
32 Monies Appropriated in this Bill:
33 None
34 Other Special Clauses:
35 This bill has retrospective operation for taxable years beginning on or after January 1,
36 2009.
37 Utah Code Sections Affected:
38 AMENDS:
39 4-23-7.5, as last amended by Laws of Utah 1997, Chapter 82
40 23-14-14.1, as last amended by Laws of Utah 2008, Chapter 389
41 59-10-1304, as renumbered and amended by Laws of Utah 2008, Chapter 389
42 59-10-1307, as last amended by Laws of Utah 2008, Chapter 382 and renumbered and
43 amended by Laws of Utah 2008, Chapter 389
44 63I-2-223, as renumbered and amended by Laws of Utah 2008, Chapter 382
45 ENACTS:
46 63I-2-204, Utah Code Annotated 1953
47 REPEALS:
48 59-10-1008, as renumbered and amended by Laws of Utah 2006, Chapter 223
49 59-10-1309, as renumbered and amended by Laws of Utah 2008, Chapter 389
50
51 Be it enacted by the Legislature of the state of Utah:
52 Section 1. Section 4-23-7.5 is amended to read:
53 4-23-7.5. Agricultural and Wildlife Damage Prevention Account.
54 (1) There is created in the General Fund a restricted account known as the Agricultural
55 and Wildlife Damage Prevention Account.
56 (2) Money received under Section 4-23-7 shall be deposited by the commissioner of
57 agriculture and food in the Agricultural and Wildlife Damage Prevention Account to be
58 appropriated for the purposes provided in this chapter.

59 (3) Any supplemental contributions received by the department from livestock owners
60 for predator control programs shall be deposited into the Agricultural and Wildlife Damage
61 Prevention Account.
62 (4) The Division of Finance shall deposit contributions and interest remaining on June
63 30, 2009 in the Wolf Depredation and Management Restricted Account created in Section
64 23-14-14.1 into the Agricultural and Wildlife Damage Prevention Account to be appropriated
65 for the purposes provided in this chapter.
66 Section 2. Section 23-14-14.1 is amended to read:
67 23-14-14.1. Wolf Depredation and Management Restricted Account -- Interest --
68 Use of contributions and interest.
69 (1) There is created within the General Fund the Wolf Depredation and Management
70 Restricted Account.
71 (2) The account shall be funded by contributions deposited into the Wolf Depredation
72 and Management Restricted Account in accordance with Section 59-10-1309 .
73 (3) (a) The Wolf Depredation and Management Restricted Account shall earn interest.
74 (b) Interest earned on the Wolf Depredation and Management Restricted Account shall
75 be deposited into the Wolf Depredation and Management Restricted Account.
76 (4) (a) Subject to Subsection (4)(b) and except as provided in Subsection (5),
77 contributions and interest deposited into the Wolf Depredation and Management Restricted
78 Account shall be used by the Division of Wildlife Resources for:
79 (i) payments for livestock depredation by wolves; or
80 (ii) wolf management.
81 (b) Contributions and interest deposited into the Wolf Depredation and Management
82 Restricted Account may be used for the purposes described in Subsection (4)(a) only to the
83 extent permitted by federal law.
84 (5) Any contributions and interest remaining on June 30, 2009 in the Wolf Depredation
85 and Management Restricted Account shall be deposited into the Agricultural and Wildlife
86 Damage Prevention Account created in Section 4-23-7.5 .
87 Section 3. Section 59-10-1304 is amended to read:
88 59-10-1304. Removal of designation and prohibitions on collection for certain
89 contributions on income tax form -- Conditions for removal and prohibitions on

90 collection -- Commission reporting requirements.
91 (1) (a) If a contribution or combination of contributions described in Subsection (1)(b)
92 generate less than $30,000 per year for three consecutive years, the commission shall remove
93 the designation for the contribution from the individual income tax return and may not collect
94 the contribution from a resident or nonresident individual beginning two taxable years after the
95 three-year period for which the contribution generates less than $30,000 per year.
96 (b) The following contributions apply to Subsection (1)(a):
97 (i) the contribution provided for in Section 59-10-1305 ;
98 (ii) the contribution provided for in Section 59-10-1306 ;
99 (iii) the sum of the contributions provided for in Subsection 59-10-1307 (1)[(a)];
100 [(iv) the contribution provided for in Subsection 59-10-1307 (1)(b);]
101 [(v)] (iv) the contribution provided for in Section 59-10-1308 ; or
102 [(vi) the contribution provided for in Section 59-10-1309 ; or]
103 [(vii)] (v) the contribution provided for in Section 59-10-1310 .
104 (2) If the commission removes the designation for a contribution under Subsection (1),
105 the commission shall report to the Revenue and Taxation Interim Committee that the
106 commission removed the designation on or before the November interim meeting of the year in
107 which the commission determines to remove the designation.
108 Section 4. Section 59-10-1307 is amended to read:
109 59-10-1307. Contributions for education.
110 (1) Except as provided in Section 59-10-1304 , a resident or nonresident individual that
111 files an individual income tax return under this chapter may designate on the resident or
112 nonresident individual's individual income tax return a contribution as provided in this part to:
113 (a) [(i)] the foundation of any school district if that foundation is exempt from federal
114 income taxation under Section 501(c)(3), Internal Revenue Code; or
115 [(ii)] (b) a school district described in Title 53A, Chapter 2, School Districts, if the
116 school district has not established a foundation[; or].
117 [(b) a college campus of the Utah College of Applied Technology listed in Section
118 53B-2a-105 .]
119 (2) If a resident or nonresident individual designates an amount as a contribution
120 under:

121 (a) Subsection (1)(a)[(i)], but does not designate a particular school district foundation
122 to receive the contribution, the contribution shall be made to the Utah State Office of Education
123 to be distributed to one or more associations of foundations:
124 (i) if those foundations that are members of the association are established in
125 accordance with Section 53A-4-205 ; and
126 (ii) as determined by the Utah State Office of Education; or
127 (b) Subsection (1)[(a)(ii)](b), but does not designate a particular school district to
128 receive the contribution, the contribution shall be made to the Utah State Office of Education.
129 (3) The commission shall:
130 (a) determine annually the total amount of contributions designated to each entity
131 described in Subsection (1) in accordance with this section; and
132 (b) subject to Subsection (2), credit the amounts described in Subsection (1) to the
133 entities.
134 Section 5. Section 63I-2-204 is enacted to read:
135 63I-2-204. Repeal dates -- Title 4.
136 Subsection 4-23-7.5 (4) is repealed July 1, 2010.
137 Section 6. Section 63I-2-223 is amended to read:
138 63I-2-223. Repeal dates -- Title 23.
139 Section 23-14-14.1 is repealed July 1, 2009.
140 Section 7. Repealer.
141 This bill repeals:
142 Section 59-10-1008, Targeted jobs tax credit.
143 Section 59-10-1309, Contribution to Wolf Depredation and Management
144 Restricted Account.
145 Section 8. Retrospective operation.
146 This bill has retrospective operation for taxable years beginning on or after January 1,
147 2009.

Legislative Review Note
as of 11-25-08 3:40 PM

Office of Legislative Research and General Counsel