1     
INDIVIDUAL INCOME TAX ACT AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Curtis S. Bramble

5     
House Sponsor: Steve Eliason

6     

7     LONG TITLE
8     Committee Note:
9          The Revenue and Taxation Interim Committee recommended this bill.
10               Legislative Vote:     17 voting for     0 voting against     1 absent
11     General Description:
12          This bill addresses the State Tax Commission's determination of domicile for purposes
13     of individual income taxation.
14     Highlighted Provisions:
15          This bill:
16          ▸     establishes an irrebuttable presumption of domicile in the state based on an
17     individual's voting record;
18          ▸     allows the State Tax Commission to consider evidence of certain tax filings in
19     determining domicile;
20          ▸     repeals provisions addressing temporary absences from the state; and
21          ▸     makes technical and conforming changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          This bill provides retrospective operation.
26     Utah Code Sections Affected:
27     AMENDS:
28          59-10-136, as last amended by Laws of Utah 2021, Chapter 392
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 59-10-136 is amended to read:
32          59-10-136. Domicile.
33          (1) (a) An individual is considered to have domicile in this state if:
34          (i) except as provided in Subsection (1)(b), a dependent with respect to whom the
35     individual or the individual's spouse claims a personal exemption or a tax credit under Section
36     24, Internal Revenue Code, on the individual's or individual's spouse's federal individual
37     income tax return is enrolled in a public kindergarten, public elementary school, or public
38     secondary school in this state; [or]
39          (ii) the individual or the individual's spouse is a resident student in accordance with
40     Section 53B-8-102 who is enrolled in an institution of higher education described in Section
41     53B-2-101 in this state[.]; or
42          (iii) the individual or the individual's spouse, in that taxable year:
43          (A) votes in this state in a regular general election, municipal general election, primary
44     election, or special election;
45          (B) has not registered to vote in another state; and
46          (C) has not voted in another state that does not require voter registration.
47          (b) The determination of whether an individual is considered to have domicile in this
48     state may not be determined in accordance with Subsection (1)(a)(i) if the individual:
49          (i) is the noncustodial parent of a dependent:
50          (A) with respect to whom the individual claims a personal exemption or a tax credit
51     under Section 24, Internal Revenue Code, on the individual's federal individual income tax
52     return; and
53          (B) who is enrolled in a public kindergarten, public elementary school, or public
54     secondary school in this state; and
55          (ii) (A) is divorced from the custodial parent of the dependent described in Subsection
56     (1)(b)(i); or
57          (B) was never married to the custodial parent of the dependent described in Subsection
58     (1)(b)(i).
59          [(2) There is a rebuttable presumption that an individual is considered to have domicile
60     in this state if:]
61          [(a) the individual or the individual's spouse claims a residential exemption in
62     accordance with Chapter 2, Property Tax Act, for that individual's or individual's spouse's
63     primary residence;]
64          [(b) the individual or the individual's spouse:]
65          [(i) votes in this state in a regular general election, municipal general election, primary
66     election, or special election during the taxable year; and]
67          [(ii) has not registered to vote in another state in that taxable year; or]
68          [(c) the individual or the individual's spouse asserts residency in this state for purposes
69     of filing an individual income tax return under this chapter, including asserting that the
70     individual or the individual's spouse is a part-year resident of this state for the portion of the
71     taxable year for which the individual or the individual's spouse is a resident of this state.]
72          [(3)] (2) (a) Subject to Subsection [(3)(b)] (2)(b), if the requirements of Subsection (1)
73     [or (2)] are not met for an individual to be considered to have domicile in this state, the
74     individual is considered to have domicile in this state if:
75          (i) the individual or the individual's spouse has a permanent home in this state to which
76     the individual or the individual's spouse intends to return after being absent; and
77          (ii) the individual or the individual's spouse has voluntarily fixed the individual's or the
78     individual's spouse's habitation in this state, not for a special or temporary purpose, but with the
79     intent of making a permanent home.
80          (b) The determination of whether an individual is considered to have domicile in this
81     state under this Subsection [(3)(a)] (2) shall be based on the preponderance of the evidence,
82     taking into consideration the totality of only the following facts and circumstances:
83          (i) whether the individual or the individual's spouse has a driver license in this state;
84          (ii) whether the individual or the individual's spouse receives a residential exemption in
85     accordance with Chapter 2, Property Tax Act, for that individual's or individual's spouse's
86     primary residence;
87          [(ii)] (iii) whether a dependent with respect to whom the individual or the individual's
88     spouse claims a personal exemption or a tax credit under Section 24, Internal Revenue Code,
89     on the individual's or individual's spouse's federal individual income tax return is a resident
90     student in accordance with Section 53B-8-102 who is enrolled in an institution of higher
91     education described in Section 53B-2-101 in this state;
92          [(iii)] (iv) the nature and quality of the living accommodations that the individual or
93     the individual's spouse has in this state as compared to another state;
94          [(iv)] (v) the presence in this state of a spouse or dependent with respect to whom the
95     individual or the individual's spouse claims a personal exemption or a tax credit under Section
96     24, Internal Revenue Code, on the individual's or individual's spouse's federal individual
97     income tax return;
98          [(v)] (vi) the physical location in which earned income as defined in Section 32(c)(2),
99     Internal Revenue Code, is earned by the individual or the individual's spouse;
100          [(vi)] (vii) the state of registration of a vehicle as defined in Section 59-12-102 owned
101     or leased by the individual or the individual's spouse;
102          [(vii)] (viii) whether the individual or the individual's spouse is a member of a church,
103     a club, or another similar organization in this state;
104          [(viii)] (ix) whether the individual or the individual's spouse lists an address in this
105     state on mail, a telephone listing, a listing in an official government publication, other
106     correspondence, or another similar item;
107          [(ix)] (x) whether the individual or the individual's spouse lists an address in this state
108     on a state or federal tax return;
109          (xi) whether the individual or the individual's spouse asserts residency in this state for
110     purposes of filing an individual income tax return under this chapter, including asserting that
111     the individual or the individual's spouse is a part-year resident of this state for the portion of the
112     taxable year for which the individual or the individual's spouse is a resident of this state;
113          [(x)] (xii) whether the individual or the individual's spouse asserts residency in this
114     state on a document, other than an individual income tax return filed under this chapter, filed
115     with or provided to a court or other governmental entity;
116          [(xi)] (xiii) the failure of an individual or the individual's spouse to obtain a permit or
117     license normally required of a resident of the state for which the individual or the individual's
118     spouse asserts to have domicile;
119          [(xii)] (xiv) whether the individual is an individual described in Subsection (1)(b);
120          [(xiii)] (xv) whether the individual:
121          (A) maintains a place of abode in [the] this state; and
122          (B) spends in the aggregate 183 or more days of the taxable year in [the] this state; or
123          [(xiv)] (xvi) whether the individual or the individual's spouse:
124          (A) did not vote in this state in a regular general election, municipal general election,
125     primary election, or special election during the taxable year, but voted in the state in a general
126     election, municipal general election, primary election, or special election during any of the
127     three taxable years prior to that taxable year; and
128          (B) has not registered to vote in another state during a taxable year described in
129     Subsection [(3)(b)(xiv)(A)] (2)(b)(xvi)(A).
130          [(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
131     and for purposes of Subsection (3)(b)(xiii), the commission may by rule define what constitutes
132     spending a day of the taxable year in the state.]
133          [(4) (a) Notwithstanding Subsections (1) through (3) and subject to the other provisions
134     of this Subsection (4), an individual is not considered to have domicile in this state if the
135     individual meets the following qualifications:]
136          [(i) except as provided in Subsection (4)(a)(ii)(A), the individual and the individual's
137     spouse are absent from the state for at least 761 consecutive days; and]
138          [(ii) during the time period described in Subsection (4)(a)(i), neither the individual nor
139     the individual's spouse:]
140          [(A) return to this state for more than 30 days in a calendar year;]
141          [(B) claim a personal exemption or a tax credit under Section 24, Internal Revenue
142     Code, on the individual's or individual's spouse's federal individual income tax return with
143     respect to a dependent who is enrolled in a public kindergarten, public elementary school, or
144     public secondary school in this state, unless the individual is an individual described in
145     Subsection (1)(b);]
146          [(C) are resident students in accordance with Section 53B-8-102 who are enrolled in an
147     institution of higher education described in Section 53B-2-101 in this state;]
148          [(D) claim a residential exemption in accordance with Chapter 2, Property Tax Act, for
149     that individual's or individual's spouse's primary residence; or]
150          [(E) assert that this state is the individual's or the individual's spouse's tax home for
151     federal individual income tax purposes.]
152          [(b) Notwithstanding Subsection (4)(a), an individual that meets the qualifications of
153     Subsection (4)(a) to not be considered to have domicile in this state may elect to be considered
154     to have domicile in this state by filing an individual income tax return in this state as a resident
155     individual.]
156          [(c) For purposes of Subsection (4)(a), an absence from the state:]
157          [(i) begins on the later of the date:]
158          [(A) the individual leaves this state; or]
159          [(B) the individual's spouse leaves this state; and]
160          [(ii) ends on the date the individual or the individual's spouse returns to this state if the
161     individual or the individual's spouse remains in this state for more than 30 days in a calendar
162     year.]
163          [(d) An individual shall file an individual income tax return or amended individual
164     income tax return under this chapter and pay any applicable interest imposed under Section
165     59-1-402 if:]
166          [(i) the individual did not file an individual income tax return or amended individual
167     income tax return under this chapter based on the individual's belief that the individual has met
168     the qualifications of Subsection (4)(a) to not be considered to have domicile in this state; and]
169          [(ii) the individual or the individual's spouse fails to meet a qualification of Subsection
170     (4)(a) to not be considered to have domicile in this state.]
171          [(e) (i) Except as provided in Subsection (4)(e)(ii), an individual that files an individual
172     income tax return or amended individual income tax return under Subsection (4)(d) shall pay
173     any applicable penalty imposed under Section 59-1-401.]
174          [(ii) The commission shall waive the penalties under Subsections 59-1-401(2), (3), and
175     (5) if an individual who is required by Subsection (4)(d) to file an individual income tax return
176     or amended individual income tax return under this chapter:]
177          [(A) files the individual income tax return or amended individual income tax return
178     within 105 days after the individual fails to meet a qualification of Subsection (4)(a) to not be
179     considered to have domicile in this state; and]
180          [(B) within the 105-day period described in Subsection (4)(e)(ii)(A), pays in full the
181     tax due on the return, any interest imposed under Section 59-1-402, and any applicable penalty
182     imposed under Section 59-1-401, except for a penalty under Subsection 59-1-401(2), (3), or
183     (5).]
184          [(5)] (3) Notwithstanding [Subsections (2) and (3)] Subsection (2), for individuals who
185     are spouses for purposes of this section and one of the spouses has domicile under this section,
186     the other spouse is not considered to have domicile in this state under Subsection (2) [or (3)] if
187     one of the spouses establishes by a preponderance of the evidence that, during the taxable year
188     and for three taxable years prior to that taxable year, that other spouse:
189          (a) is not an owner of property in this state;
190          (b) [does not return to this state for] has not spent in the aggregate more than 30 days
191     [in a calendar] of the taxable year in this state;
192          (c) has not received earned income as defined in Section 32(c)(2), Internal Revenue
193     Code, in this state;
194          (d) has not voted in this state in a regular general election, municipal general election,
195     primary election, or special election; and
196          (e) does not have a driver license in this state.
197          [(6)] (4) [(a) Except as provided in Subsection (5), an individual is considered to have
198     domicile in this state in accordance with this section, the individual's spouse is considered to
199     have domicile in this state.(b)] (a) For purposes of this section, an individual is not considered
200     to have a spouse if:
201          (i) the individual is legally separated or divorced from the spouse; or
202          (ii) the individual and the individual's spouse claim married filing separately filing
203     status for purposes of filing a federal individual income tax return for the taxable year.
204          [(c)] (b) Except as provided in Subsection [(6)(b)(ii)] (4)(a)(ii), for purposes of this
205     section, an individual's filing status on a federal individual income tax return or a return filed
206     under this chapter may not be considered in determining whether [an] the individual has a
207     spouse.
208          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
209     for purposes of Subsections (2)(b)(xv) and (3)(b), the commission may by rule define what
210     constitutes spending a day of the taxable year in this state.
211          [(7) For purposes of this section, whether or not an individual or the individual's
212     spouse claims a property tax residential exemption under Chapter 2, Property Tax Act, for the
213     residential property that is the primary residence of a tenant of the individual or the individual's
214     spouse may not be considered in determining domicile in this state.]
215          Section 2. Effective date.
216          This bill takes effect on May 1, 2024.
217          Section 3. Retrospective operation.
218          This bill has retrospective operation for a taxable year beginning on or after January 1,
219     2024.