H.B. 57

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 None

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.




Legislative Review Note
as of 11-25-08 3:26 PM

Office of Legislative Research and General Counsel