1     
TAX REVISIONS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Steve Eliason

5     
Senate Sponsor: Daniel McCay

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7     LONG TITLE
8     Committee Note:
9          The Revenue and Taxation Interim Committee recommended this bill.
10               Legislative Vote:     13 voting for     2 voting against     3 absent
11     General Description:
12           This bill modifies state tax provisions.
13     Highlighted Provisions:
14          This bill:
15          ▸     amends the corporate franchise and income tax rates; and
16          ▸     amends the individual income tax rate.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides retrospective operation.
21     Utah Code Sections Affected:
22     AMENDS:
23          59-7-104, as last amended by Laws of Utah 2022, Chapter 12
24          59-7-201, as last amended by Laws of Utah 2022, Chapter 12
25          59-10-104, as last amended by Laws of Utah 2022, Chapter 12
26     

27     Be it enacted by the Legislature of the state of Utah:

28          Section 1. Section 59-7-104 is amended to read:
29          59-7-104. Tax -- Minimum tax.
30          (1) Each domestic and foreign corporation, except a corporation that is exempt under
31     Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable
32     income for the taxable year for the privilege of exercising the corporation's corporate franchise
33     or for the privilege of doing business in the state.
34          (2) The tax shall be [4.85] 4.8% of a corporation's Utah taxable income.
35          (3) The minimum tax a corporation shall pay under this chapter is $100.
36          Section 2. Section 59-7-201 is amended to read:
37          59-7-201. Tax -- Minimum tax.
38          (1) There is imposed upon each corporation, except a corporation that is exempt under
39     Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is
40     derived from sources within this state other than income for any period that the corporation is
41     required to include in the corporation's tax base under Section 59-7-104.
42          (2) The tax imposed by Subsection (1) shall be [4.85] 4.8% of a corporation's Utah
43     taxable income.
44          (3) In no case shall the tax be less than $100.
45          Section 3. Section 59-10-104 is amended to read:
46          59-10-104. Tax basis -- Tax rate -- Exemption.
47          (1) A tax is imposed on the state taxable income of a resident individual as provided in
48     this section.
49          (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
50     product of:
51          (a) the resident individual's state taxable income for that taxable year; and
52          (b) [4.85] 4.8%.
53          (3) This section does not apply to a resident individual exempt from taxation under
54     Section 59-10-104.1.
55          Section 4. Retrospective operation.
56          This bill has retrospective operation for a taxable year beginning on or after January 1,
57     2023.