1     
INCOME TAX RATE MODIFICATIONS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Nelson T. Abbott

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends the income tax rates.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends the corporate franchise and income tax rates; and
13          ▸     amends the individual income tax rate.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          This bill provides retrospective operation.
18     Utah Code Sections Affected:
19     AMENDS:
20          59-7-104, as last amended by Laws of Utah 2020, Chapter 354
21          59-7-201, as last amended by Laws of Utah 2018, Chapter 456
22          59-10-104, as last amended by Laws of Utah 2018, Chapter 456
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 59-7-104 is amended to read:
26          59-7-104. Tax -- Minimum tax.
27          (1) Each domestic and foreign corporation, except a corporation that is exempt under

28     Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable
29     income for the taxable year for the privilege of exercising the corporation's corporate franchise
30     or for the privilege of doing business in the state.
31          (2) The tax shall be [4.95] 4.5% of a corporation's Utah taxable income.
32          (3) The minimum tax a corporation shall pay under this chapter is $100.
33          Section 2. Section 59-7-201 is amended to read:
34          59-7-201. Tax -- Minimum tax.
35          (1) There is imposed upon each corporation, except a corporation that is exempt under
36     Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is
37     derived from sources within this state other than income for any period that the corporation is
38     required to include in the corporation's tax base under Section 59-7-104.
39          (2) The tax imposed by Subsection (1) shall be [4.95] 4.5% of a corporation's Utah
40     taxable income.
41          (3) In no case shall the tax be less than $100.
42          Section 3. Section 59-10-104 is amended to read:
43          59-10-104. Tax basis -- Tax rate -- Exemption.
44          (1) A tax is imposed on the state taxable income of a resident individual as provided in
45     this section.
46          (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
47     product of:
48          (a) the resident individual's state taxable income for that taxable year; and
49          (b) [4.95] 4.5%.
50          (3) This section does not apply to a resident individual exempt from taxation under
51     Section 59-10-104.1.
52          Section 4. Retrospective operation.
53          This bill has retrospective operation for a taxable year beginning on or after January 1,
54     2022.