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H.B. 317 Enrolled

             1     

CURRENCY AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad J. Galvez

             5     
Senate Sponsor: Scott K. Jenkins

             6      Cosponsors:
             7      Johnny Anderson
             8      Roger E. Barrus
             9      Bradley M. Daw
             10      John Dougall
             11      Gage Froerer
             12      Keith GroverGregory H. Hughes
Ken Ivory
Michael T. Morley
Michael E. Noel
Curtis Oda
Patrick Painter
Lee B. PerryJeremy A. Peterson
Holly J. Richardson
Stephen E. Sandstrom
Ryan D. Wilcox
Carl Wimmer
Bill Wright              13     
             14      LONG TITLE
             15      General Description:
             16          This bill recognizes gold and silver coins that are issued by the federal government as
             17      legal tender in the state and exempts the exchange of the coins from certain types of
             18      state tax liability.
             19      Highlighted Provisions:
             20          This bill:
             21          .    provides definitions;
             22          .    recognizes gold and silver coins issued by the federal government to be legal tender
             23      in the state;
             24          .    does not compel a person to tender or accept gold and silver coin;
             25          .    provides that the exchange of gold and silver coins for another form of legal tender
             26      does not create any individual income or sales tax liability;
             27          .    requires the Revenue and Taxation Interim Committee to:
             28              .    study the possibility of establishing an alternative form of legal tender;


             29              .    recommend whether an alternative form of legal tender should be established;
             30      and
             31              .    prepare any recommended legislation for the 2012 General Session; and
             32          .    enacts an uncodified severability clause.
             33      Money Appropriated in this Bill:
             34          None
             35      Other Special Clauses:
             36          None
             37      Utah Code Sections Affected:
             38      AMENDS:
             39          59-10-1002.2, as renumbered and amended by Laws of Utah 2008, Chapter 389
             40      ENACTS:
             41          59-1-1501, Utah Code Annotated 1953
             42          59-1-1502, Utah Code Annotated 1953
             43          59-1-1503, Utah Code Annotated 1953
             44          59-1-1504, Utah Code Annotated 1953
             45          59-10-1025, Utah Code Annotated 1953
             46      Uncodified Material Affected:
             47      ENACTS UNCODIFIED MATERIAL
             48     
             49      Be it enacted by the Legislature of the state of Utah:
             50          Section 1. Section 59-1-1501 is enacted to read:
             51     
Part 15. Legal Tender Act

             52          59-1-1501. Title.
             53          This part is known as the "Legal Tender Act."
             54          Section 2. Section 59-1-1502 is enacted to read:
             55          59-1-1502. Gold and silver coin.
             56          (1) Gold and silver coin issued by the federal government is legal tender in the state.


             57          (2) A person may not compel any other person to tender or accept gold and silver coin
             58      that is issued by the federal government.
             59          Section 3. Section 59-1-1503 is enacted to read:
             60          59-1-1503. Nonrefundable credit -- Sales tax exemption.
             61          (1) There is a nonrefundable credit established for any capital gains incurred from the
             62      exchange of gold and silver coin issued by the federal government for another form of legal
             63      tender as provided in Section 59-10-1025 .
             64          (2) The exchange of gold and silver coin issued by the federal government for another
             65      form of legal tender is exempt from sales and use taxes as provided in Subsection
             66      59-12-104 (50).
             67          Section 4. Section 59-1-1504 is enacted to read:
             68          59-1-1504. Revenue and Taxation Interim Committee study.
             69          The Revenue and Taxation Interim Committee shall during the 2011 interim:
             70          (1) study the possibility of establishing an alternative form of legal tender for the
             71      payment of debts, public charges, taxes, and dues within the state;
             72          (2) recommend whether legislation should be drafted to establish an alternative form of
             73      legal tender; and
             74          (3) prepare any legislation that the Revenue and Taxation Interim Committee
             75      recommends in accordance with Subsection (2) for consideration by the Legislature during the
             76      2012 General Session.
             77          Section 5. Section 59-10-1002.2 is amended to read:
             78           59-10-1002.2. Apportionment of tax credits.
             79          (1) A nonresident individual or a part-year resident individual that claims a tax credit
             80      in accordance with Section 59-10-1017 , 59-10-1018 , 59-10-1019 , 59-10-1021 , 59-10-1022 ,
             81      59-10-1023 , [or] 59-10-1024 , or 59-10-1025 may only claim an apportioned amount of the tax
             82      credit equal to:
             83          (a) for a nonresident individual, the product of:
             84          (i) the state income tax percentage for the nonresident individual; and


             85          (ii) the amount of the tax credit that the nonresident individual would have been
             86      allowed to claim but for the apportionment requirements of this section; or
             87          (b) for a part-year resident individual, the product of:
             88          (i) the state income tax percentage for the part-year resident individual; and
             89          (ii) the amount of the tax credit that the part-year resident individual would have been
             90      allowed to claim but for the apportionment requirements of this section.
             91          (2) A nonresident estate or trust that claims a tax credit in accordance with Section
             92      59-10-1017 , 59-10-1020 , 59-10-1022 , [or] 59-10-1024 , or 59-10-1025 may only claim an
             93      apportioned amount of the tax credit equal to the product of:
             94          (a) the state income tax percentage for the nonresident estate or trust; and
             95          (b) the amount of the tax credit that the nonresident estate or trust would have been
             96      allowed to claim but for the apportionment requirements of this section.
             97          Section 6. Section 59-10-1025 is enacted to read:
             98          59-10-1025. Nonrefundable tax credit for capital gain transactions on the
             99      exchange of gold and silver coin for another form of legal tender.
             100          (1) As used in this section:
             101          (a) "Capital gain transaction" means a transaction that results in a:
             102          (i) short-term capital gain; or
             103          (ii) long-term capital gain.
             104          (b) "Long-term capital gain" is as defined in Section 1222, Internal Revenue Code.
             105          (c) "Short-term capital gain" is as defined in Section 1222, Internal Revenue Code.
             106          (2) Except as provided in Section 59-10-1002.2 , for taxable years beginning on or after
             107      January 1, 2012, a claimant, estate, or trust may claim a nonrefundable tax credit equal to the
             108      product of:
             109          (a) to the extent a capital gain is not offset by a capital loss under Chapter 1,
             110      Subchapter P, Capital Gains and Losses, Internal Revenue Code, the total amount of the
             111      claimant's, estate's, or trust's short-term capital gain or long-term capital gain on a capital gain
             112      transaction from an exchange made on or after January 1, 2012, of gold or silver coin issued by


             113      the federal government for another form of legal tender; and
             114          (b) 5%.
             115          (3) A claimant, estate, or trust may not carry forward or carry back a tax credit under
             116      this section.
             117          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             118      commission may make rules to implement this section.
             119          Section 7. Severability clause.
             120          If any section of this bill or the application of any section of this bill to any person or
             121      circumstance is held invalid by a final decision of a court of competent jurisdiction, the
             122      remainder of this bill shall be given effect without the invalid section or application. The
             123      provisions of this bill are severable.


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