Utah 2023 Regular Session

Utah House Bill HB0056 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 56
	1	+	1st Sub. H.B. 56
	2	+	LEGISLATIVE GENERAL COUNSEL
	3	+	6 Approved for Filing: S. Elder 6
	4	+	6 01-31-23 11:01 AM 6
	5	+	H.B. 56
	6	+	1st Sub. (Buff)
	7	+	Representative Steve Eliason proposes the following substitute bill:
2	8		1 TAX ASSESSMENT AMENDMENTS
3	9		2 2023 GENERAL SESSION
4	10		3 STATE OF UTAH
5	11		4 Chief Sponsor: Steve Eliason
6	12		5 Senate Sponsor: Lincoln Fillmore
7	13		6
8	14		7LONG TITLE
9	15		8General Description:
10	16		9 This bill modifies provisions relating to tax assessments.
11	17		10Highlighted Provisions:
12	18		11 This bill:
13	19		12 <defines terms;
14	20		13 <requires a county assessor to provide certain assessment data to the commission;
15	21		14 <establishes a date by which the county assessor must provide the assessment data to
16	22		15the commission;
17	23		16 <permits the commission to review the county's assessment data and to provide
18	24		17findings and make recommendations to the county;
19	25		18 <permits the commission to subscribe to a market data service; and
20	26		19 <establishes requirements for a pass-through entity when filing an amended return.
21	27		20Money Appropriated in this Bill:
22	28		21 None
23	29		22Other Special Clauses:
24	30		23 This bill provides retrospective operation.
25	31		24Utah Code Sections Affected:
26	32		25AMENDS:
	33	+	HB0056S01 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	34	+	- 2 -
27	35		26 59-10-114, as last amended by Laws of Utah 2022, Chapter 238
28	36		27 59-10-406, as last amended by Laws of Utah 2022, Chapter 238
29	37		28 59-10-1045, as enacted by Laws of Utah 2022, Chapter 238
30		-	29 59-10-1402, as last amended by Laws of Utah 2022, Chapter 238 H.B. 56 Enrolled Copy
31		-	- 2 -
	38	+	29 59-10-1402, as last amended by Laws of Utah 2022, Chapter 238
32	39		30 59-10-1403, as last amended by Laws of Utah 2022, Chapter 238
33	40		31 59-10-1403.2, as last amended by Laws of Utah 2022, Chapter 238
34	41		32ENACTS:
35	42		33 59-2-313.1, Utah Code Annotated 1953
36	43		34
37	44		35Be it enacted by the Legislature of the state of Utah:
38	45		36 Section 1. Section 59-2-313.1 is enacted to read:
39		-	37 59-2-313.1. County assessor duties to provide assessment data -- Commission
40		-	38review -- Subscription to market data service.
	46	+	37 59-2-313.1. County assessor duties to provide assessment data - Commission
	47	+	38review - Subscription to market data service.
41	48		39 (1) As used in this section, "assessment data" means:
42	49		40 (a) the information described in Subsection 59-2-303.1(6) contained in a county's
43	50		41database used in mass appraisal; and
44	51		42 (b) any other assessment information the commission requires.
45	52		43 (2) A county assessor shall provide assessment data to the commission:
46	53		44 (a) (i) annually on or before March 31;
47	54		45 (ii) no later than 15 days after the date the county assessor provides the assessment
48	55		46book to the county auditor under Section 59-2-311;
49	56		47 (iii) no later than 15 days after the date the county auditor provides the assessment roll
50	57		48to the county treasurer under Section 59-2-326; or
51	58		49 (b) at any other time requested by the commission.
52	59		50 (3) The commission may:
53	60		51 (a) review a county's annual update of property values the county is required to perform
54	61		52under Section 59-2-303.1;
55	62		53 (b) review a county's detailed review of property characteristics the county is required
56	63		54to perform under Section 59-2-303.1; and
57	64		55 (c) provide findings and recommendations to the county.
58		-	56 (4) The commission may subscribe to a market data service to assist:
59		-	57 (a) the commission in performing a review described in Subsection (3); and Enrolled Copy H.B. 56
	65	+	56 (4) The commission may subscribe to a market data service to assist: 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
60	66		- 3 -
	67	+	57 (a) the commission in performing a review described in Subsection (3); and
61	68		58 (b) counties in meeting the requirements of Section 59-2-303.1.
62	69		59 Section 2. Section 59-10-114 is amended to read:
63	70		60 59-10-114. Additions to and subtractions from adjusted gross income of an
64	71		61individual.
65	72		62 (1) There shall be added to adjusted gross income of a resident or nonresident
66	73		63individual:
67	74		64 (a) a lump sum distribution that the taxpayer does not include in adjusted gross income
68	75		65on the taxpayer's federal individual income tax return for the taxable year;
69	76		66 (b) the amount of a child's income calculated under Subsection (4) that:
70	77		67 (i) a parent elects to report on the parent's federal individual income tax return for the
71	78		68taxable year; and
72	79		69 (ii) the parent does not include in adjusted gross income on the parent's federal
73	80		70individual income tax return for the taxable year;
74	81		71 (c) (i) a withdrawal from a medical care savings account and any penalty imposed for
75	82		72the taxable year if:
76	83		73 (A) the resident or nonresident individual does not deduct the amounts on the resident
77	84		74or nonresident individual's federal individual income tax return under Section 220, Internal
78	85		75Revenue Code;
79	86		76 (B) the withdrawal is subject to Subsections 31A-32a-105(1) and (2); and
80	87		77 (C) the withdrawal is subtracted on, or used as the basis for claiming a tax credit on, a
81	88		78return the resident or nonresident individual files under this chapter;
82	89		79 (ii) a disbursement required to be added to adjusted gross income in accordance with
83	90		80Subsection 31A-32a-105(3); or
84	91		81 (iii) an amount required to be added to adjusted gross income in accordance with
85	92		82Subsection 31A-32a-105(5)(c);
86	93		83 (d) the amount withdrawn under Title 53B, Chapter 8a, Utah Educational Savings Plan,
87	94		84from the account of a resident or nonresident individual who is an account owner as defined in
88		-	85Section 53B-8a-102, for the taxable year for which the amount is withdrawn, if that amount H.B. 56 Enrolled Copy
	95	+	85Section 53B-8a-102, for the taxable year for which the amount is withdrawn, if that amount
	96	+	86withdrawn from the account of the resident or nonresident individual who is the account
	97	+	87owner: 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
89	98		- 4 -
90		-	86withdrawn from the account of the resident or nonresident individual who is the account
91		-	87owner:
92	99		88 (i) is not expended for:
93	100		89 (A) higher education costs as defined in Section 53B-8a-102.5; or
94	101		90 (B) a payment or distribution that qualifies as an exception to the additional tax for
95	102		91distributions not used for educational expenses provided in Sections 529(c) and 530(d),
96	103		92Internal Revenue Code; and
97	104		93 (ii) is:
98	105		94 (A) subtracted by the resident or nonresident individual:
99	106		95 (I) who is the account owner; and
100	107		96 (II) on the resident or nonresident individual's return filed under this chapter for a
101	108		97taxable year beginning on or before December 31, 2007; or
102	109		98 (B) used as the basis for the resident or nonresident individual who is the account
103	110		99owner to claim a tax credit under Section 59-10-1017;
104	111		100 (e) except as provided in Subsection (5), for bonds, notes, and other evidences of
105	112		101indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other
106	113		102evidences of indebtedness:
107	114		103 (i) issued by one or more of the following entities:
108	115		104 (A) a state other than this state;
109	116		105 (B) the District of Columbia;
110	117		106 (C) a political subdivision of a state other than this state; or
111	118		107 (D) an agency or instrumentality of an entity described in Subsections (1)(e)(i)(A)
112	119		108through (C); and
113	120		109 (ii) to the extent the interest is not included in adjusted gross income on the taxpayer's
114	121		110federal income tax return for the taxable year;
115	122		111 (f) subject to Subsection (2)(c), any distribution received by a resident beneficiary of a
116	123		112resident trust of income that was taxed at the trust level for federal tax purposes, but was
117		-	113subtracted from state taxable income of the trust pursuant to Subsection 59-10-202(2)(b); Enrolled Copy H.B. 56
118		-	- 5 -
	124	+	113subtracted from state taxable income of the trust pursuant to Subsection 59-10-202(2)(b);
119	125		114 (g) any distribution received by a resident beneficiary of a nonresident trust of
120	126		115undistributed distributable net income realized by the trust on or after January 1, 2004, if that
121	127		116undistributed distributable net income was taxed at the trust level for federal tax purposes, but
122	128		117was not taxed at the trust level by any state, with undistributed distributable net income
123		-	118considered to be distributed from the most recently accumulated undistributed distributable net
	129	+	118considered to be distributed from the most recently accumulated undistributed distributable net 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	130	+	- 5 -
124	131		119income;
125	132		120 (h) any adoption expense:
126	133		121 (i) for which a resident or nonresident individual receives reimbursement from another
127	134		122person; and
128	135		123 (ii) to the extent to which the resident or nonresident individual subtracts that adoption
129	136		124expense:
130	137		125 (A) on a return filed under this chapter for a taxable year beginning on or before
131	138		126December 31, 2007; or
132	139		127 (B) from federal taxable income on a federal individual income tax return;
133	140		128 (i) the amount of tax paid on income attributed to the individual in accordance with
134	141		129Subsection 59-10-1403.2(2) that is not included in adjusted gross income; and
135	142		130 (j) the amount of tax paid:
136	143		131 (i) on income attributed to the individual and taxable in this state, that is not included
137	144		132in adjusted gross income;
138	145		133 (ii) to another state; and
139	146		134 (iii) that the commission determines is substantially similar to the tax imposed under
140	147		135Subsection 59-10-1403.2(2).
141	148		136 (2) There shall be subtracted from adjusted gross income of a resident or nonresident
142	149		137individual:
143	150		138 (a) the difference between:
144	151		139 (i) the interest or a dividend on an obligation or security of the United States or an
145	152		140authority, commission, instrumentality, or possession of the United States, to the extent that
146		-	141interest or dividend is: H.B. 56 Enrolled Copy
147		-	- 6 -
	153	+	141interest or dividend is:
148	154		142 (A) included in adjusted gross income for federal income tax purposes for the taxable
149	155		143year; and
150	156		144 (B) exempt from state income taxes under the laws of the United States; and
151	157		145 (ii) any interest on indebtedness incurred or continued to purchase or carry the
152	158		146obligation or security described in Subsection (2)(a)(i);
153	159		147 (b) if the conditions of Subsection (3)(a) are met, the amount of income derived by a
154	160		148Ute tribal member:
155		-	149 (i) during a time period that the Ute tribal member resides on homesteaded land
	161	+	149 (i) during a time period that the Ute tribal member resides on homesteaded land 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	162	+	- 6 -
156	163		150diminished from the Uintah and Ouray Reservation; and
157	164		151 (ii) from a source within the Uintah and Ouray Reservation;
158	165		152 (c) an amount received by a resident or nonresident individual or distribution received
159	166		153by a resident or nonresident beneficiary of a resident trust:
160	167		154 (i) if that amount or distribution constitutes a refund of taxes imposed by:
161	168		155 (A) a state; or
162	169		156 (B) the District of Columbia; and
163	170		157 (ii) to the extent that amount or distribution is included in adjusted gross income for
164	171		158that taxable year on the federal individual income tax return of the resident or nonresident
165	172		159individual or resident or nonresident beneficiary of a resident trust;
166	173		160 (d) the amount of a railroad retirement benefit:
167	174		161 (i) paid:
168	175		162 (A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et
169	176		163seq.;
170	177		164 (B) to a resident or nonresident individual; and
171	178		165 (C) for the taxable year; and
172	179		166 (ii) to the extent that railroad retirement benefit is included in adjusted gross income on
173	180		167that resident or nonresident individual's federal individual income tax return for that taxable
174	181		168year;
175		-	169 (e) an amount: Enrolled Copy H.B. 56
176		-	- 7 -
	182	+	169 (e) an amount:
177	183		170 (i) received by an enrolled member of an American Indian tribe; and
178	184		171 (ii) to the extent that the state is not authorized or permitted to impose a tax under this
179	185		172part on that amount in accordance with:
180	186		173 (A) federal law;
181	187		174 (B) a treaty; or
182	188		175 (C) a final decision issued by a court of competent jurisdiction;
183	189		176 (f) an amount received:
184	190		177 (i) for the interest on a bond, note, or other obligation issued by an entity for which
185	191		178state statute provides an exemption of interest on its bonds from state individual income tax;
186	192		179 (ii) by a resident or nonresident individual;
187		-	180 (iii) for the taxable year; and
	193	+	180 (iii) for the taxable year; and 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	194	+	- 7 -
188	195		181 (iv) to the extent the amount is included in adjusted gross income on the taxpayer's
189	196		182federal income tax return for the taxable year;
190	197		183 (g) the amount of all income, including income apportioned to another state, of a
191	198		184nonmilitary spouse of an active duty military member if:
192	199		185 (i) both the nonmilitary spouse and the active duty military member are nonresident
193	200		186individuals;
194	201		187 (ii) the active duty military member is stationed in Utah;
195	202		188 (iii) the nonmilitary spouse is subject to the residency provisions of 50 U.S.C. Sec.
196	203		1894001(a)(2); and
197	204		190 (iv) the income is included in adjusted gross income for federal income tax purposes
198	205		191for the taxable year;
199	206		192 (h) for a taxable year beginning on or after January 1, 2019, but beginning on or before
200	207		193December 31, 2019, only:
201	208		194 (i) the amount of any FDIC premium paid or incurred by the taxpayer that is
202	209		195disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
203	210		196Revenue Code, on the taxpayer's 2018 federal income tax return; plus
204		-	197 (ii) the amount of any FDIC premium paid or incurred by the taxpayer that is H.B. 56 Enrolled Copy
205		-	- 8 -
	211	+	197 (ii) the amount of any FDIC premium paid or incurred by the taxpayer that is
206	212		198disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
207	213		199Revenue Code, for the taxable year;
208	214		200 (i) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
209	215		201premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income
210	216		202tax purposes under Section 162(r), Internal Revenue Code, for the taxable year; and
211	217		203 (j) an amount of a distribution from a qualified retirement plan under Section 401(a),
212	218		204Internal Revenue Code, if:
213	219		205 (i) the amount of the distribution is included in adjusted gross income on the resident
214	220		206or nonresident individual's federal individual income tax return for the taxable year; and
215	221		207 (ii) for the taxable year when the amount of the distribution was contributed to the
216	222		208qualified retirement plan, the amount of the distribution:
217	223		209 (A) was not included in adjusted gross income on the resident or nonresident
218	224		210individual's federal individual income tax return for the taxable year; and
219		-	211 (B) was taxed by another state of the United States, the District of Columbia, or a
	225	+	211 (B) was taxed by another state of the United States, the District of Columbia, or a 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	226	+	- 8 -
220	227		212possession of the United States.
221	228		213 (3) (a) A subtraction for an amount described in Subsection (2)(b) is allowed only if:
222	229		214 (i) the taxpayer is a Ute tribal member; and
223	230		215 (ii) the governor and the Ute tribe execute and maintain an agreement meeting the
224	231		216requirements of this Subsection (3).
225	232		217 (b) The agreement described in Subsection (3)(a):
226	233		218 (i) may not:
227	234		219 (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
228	235		220 (B) provide a subtraction under this section greater than or different from the
229	236		221subtraction described in Subsection (2)(b); or
230	237		222 (C) affect the power of the state to establish rates of taxation; and
231	238		223 (ii) shall:
232	239		224 (A) provide for the implementation of the subtraction described in Subsection (2)(b);
233		-	225 (B) be in writing; Enrolled Copy H.B. 56
234		-	- 9 -
	240	+	225 (B) be in writing;
235	241		226 (C) be signed by:
236	242		227 (I) the governor; and
237	243		228 (II) the chair of the Business Committee of the Ute tribe;
238	244		229 (D) be conditioned on obtaining any approval required by federal law; and
239	245		230 (E) state the effective date of the agreement.
240	246		231 (c) (i) The governor shall report to the commission by no later than February 1 of each
241	247		232year regarding whether or not an agreement meeting the requirements of this Subsection (3) is
242	248		233in effect.
243	249		234 (ii) If an agreement meeting the requirements of this Subsection (3) is terminated, the
244	250		235subtraction permitted under Subsection (2)(b) is not allowed for taxable years beginning on or
245	251		236after the January 1 following the termination of the agreement.
246	252		237 (d) For purposes of Subsection (2)(b) and in accordance with Title 63G, Chapter 3,
247	253		238Utah Administrative Rulemaking Act, the commission may make rules:
248	254		239 (i) for determining whether income is derived from a source within the Uintah and
249	255		240Ouray Reservation; and
250	256		241 (ii) that are substantially similar to how adjusted gross income derived from Utah
251		-	242sources is determined under Section 59-10-117.
	257	+	242sources is determined under Section 59-10-117. 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	258	+	- 9 -
252	259		243 (4) (a) For purposes of this Subsection (4), "Form 8814" means:
253	260		244 (i) the federal individual income tax Form 8814, Parents' Election To Report Child's
254	261		245Interest and Dividends; or
255	262		246 (ii) (A) a form designated by the commission in accordance with Subsection
256	263		247(4)(a)(ii)(B) as being substantially similar to 2000 Form 8814 if for purposes of federal
257	264		248individual income taxes the information contained on 2000 Form 8814 is reported on a form
258	265		249other than Form 8814; and
259	266		250 (B) for purposes of Subsection (4)(a)(ii)(A) and in accordance with Title 63G, Chapter
260	267		2513, Utah Administrative Rulemaking Act, the commission may make rules designating a form as
261	268		252being substantially similar to 2000 Form 8814 if for purposes of federal individual income
262		-	253taxes the information contained on 2000 Form 8814 is reported on a form other than Form H.B. 56 Enrolled Copy
263		-	- 10 -
	269	+	253taxes the information contained on 2000 Form 8814 is reported on a form other than Form
264	270		2548814.
265	271		255 (b) The amount of a child's income added to adjusted gross income under Subsection
266	272		256(1)(b) is equal to the difference between:
267	273		257 (i) the lesser of:
268	274		258 (A) the base amount specified on Form 8814; and
269	275		259 (B) the sum of the following reported on Form 8814:
270	276		260 (I) the child's taxable interest;
271	277		261 (II) the child's ordinary dividends; and
272	278		262 (III) the child's capital gain distributions; and
273	279		263 (ii) the amount not taxed that is specified on Form 8814.
274	280		264 (5) Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences
275	281		265of indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may not
276	282		266be added to adjusted gross income of a resident or nonresident individual if, as annually
277	283		267determined by the commission:
278	284		268 (a) for an entity described in Subsection (1)(e)(i)(A) or (B), the entity and all of the
279	285		269political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on
280	286		270income on any part of the bonds, notes, and other evidences of indebtedness of this state; or
281	287		271 (b) for an entity described in Subsection (1)(e)(i)(C) or (D), the following do not
282	288		272impose a tax based on income on any part of the bonds, notes, and other evidences of
283		-	273indebtedness of this state:
	289	+	273indebtedness of this state: 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	290	+	- 10 -
284	291		274 (i) the entity; or
285	292		275 (ii) (A) the state in which the entity is located; or
286	293		276 (B) the District of Columbia, if the entity is located within the District of Columbia.
287	294		277 Section 3. Section 59-10-406 is amended to read:
288	295		278 59-10-406. Collection and payment of tax -- Forms filed electronically.
289	296		279 (1) (a) Each employer shall, on or before the last day of April, July, October, and
290	297		280January, pay to the commission the amount required to be deducted and withheld from wages
291		-	281paid to any employee during the preceding calendar quarter under this part. Enrolled Copy H.B. 56
292		-	- 11 -
	298	+	281paid to any employee during the preceding calendar quarter under this part.
293	299		282 (b) The commission may change the time or period for making reports and payments
294	300		283if:
295	301		284 (i) in its opinion, the tax is in jeopardy; or
296	302		285 (ii) a different time or period will facilitate the collection and payment of the tax by the
297	303		286employer.
298	304		287 (2) (a) Each employer shall file a return, in a form the commission prescribes, with
299	305		288each payment of the amount deducted and withheld under this part showing:
300	306		289 (i) the total amount of wages paid to his employees;
301	307		290 (ii) the amount of federal income tax deducted and withheld;
302	308		291 (iii) the amount of tax under this part deducted and withheld; and
303	309		292 (iv) any other information the commission may require.
304	310		293 (b) The employer shall file the return described in Subsection (2)(a) in an electronic
305	311		294format approved by the commission.
306	312		295 (3) (a) Each employer shall file an annual return, in a form the commission prescribes,
307	313		296summarizing:
308	314		297 (i) the total compensation paid;
309	315		298 (ii) the federal income tax deducted and withheld; and
310	316		299 (iii) the state tax deducted and withheld for each employee during the calendar year.
311	317		300 (b) The return required by Subsection (3)(a) shall be filed with the commission:
312	318		301 (i) in an electronic format approved by the commission; and
313	319		302 (ii) on or before January 31 of the year following that for which the report is made.
314	320		303 (4) (a) Each employer shall also, in accordance with rules prescribed by the
315		-	304commission, provide each employee from whom state income tax has been withheld with a
	321	+	304commission, provide each employee from whom state income tax has been withheld with a 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	322	+	- 11 -
316	323		305statement of the amounts of total compensation paid and the amounts deducted and withheld
317	324		306for that employee during the preceding calendar year in accordance with this part.
318	325		307 (b) The statement shall be made available to each employee described in Subsection
319	326		308(4)(a) on or before January 31 of the year following that for which the report is made.
320		-	309 (5) (a) The employer is liable to the commission for the payment of the tax required to H.B. 56 Enrolled Copy
321		-	- 12 -
	327	+	309 (5) (a) The employer is liable to the commission for the payment of the tax required to
322	328		310be deducted and withheld under this part.
323	329		311 (b) If an employer pays the tax required to be deducted and withheld under this part:
324	330		312 (i) an employee of the employer is not liable for the amount of any payment described
325	331		313in Subsection (5)(a); and
326	332		314 (ii) the employer is not liable to any person or to any employee for the amount of any
327	333		315such payment described in Subsection (5)(a).
328	334		316 (c) For the purpose of making penal provisions of this title applicable, any amount
329	335		317deducted or required to be deducted and remitted to the commission under this part is
330	336		318considered to be the tax of the employer and with respect to such amounts the employer is
331	337		319considered to be the taxpayer.
332	338		320 (6) (a) Each employer that deducts and withholds any amount under this part shall hold
333	339		321the amount in trust for the state for the payment of the amount to the commission in the manner
334	340		322and at the time provided for in this part.
335	341		323 (b) So long as any delinquency continues, the state shall have a lien to secure the
336	342		324payment of any amounts withheld, and not remitted as provided under this section, upon all of
337	343		325the assets of the employer and all property owned or used by the employer in the conduct of the
338	344		326employer's business, including stock-in-trade, business fixtures, and equipment.
339	345		327 (c) The lien described in Subsection (6)(b) shall be prior to any lien of any kind,
340	346		328including existing liens for taxes.
341	347		329 (7) To the extent consistent with this section, the commission may use all the
342	348		330provisions of this chapter relating to records, penalties, interest, deficiencies, redetermination
343	349		331of deficiencies, overpayments, refunds, assessments, and venue to enforce this section.
344	350		332 (8) (a) Subject to Subsections (8)(b) and (c), the commission shall require an employer
345	351		333that issues the following forms for a taxable year to file the forms with the commission in an
346	352		334electronic format approved by the commission:
347		-	335 (i) a federal Form W-2;
	353	+	335 (i) a federal Form W-2; 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	354	+	- 12 -
348	355		336 (ii) a federal Form 1099 filed for purposes of withholding under Section 59-10-404; or
349		-	337 (iii) a federal form substantially similar to a form described in Subsection (8)(a)(i) or Enrolled Copy H.B. 56
350		-	- 13 -
	356	+	337 (iii) a federal form substantially similar to a form described in Subsection (8)(a)(i) or
351	357		338(ii) if designated by the commission in accordance with Subsection (8)(d).
352	358		339 (b) An employer that is required to file a form with the commission in accordance with
353	359		340Subsection (8)(a) shall file the form on or before January 31.
354	360		341 (c) An employer that is required to file a form with the commission in accordance with
355	361		342Subsection (8)(a) shall provide:
356	362		343 (i) accurate information on the form; and
357	363		344 (ii) all of the information required by the Internal Revenue Service to be contained on
358	364		345the form.
359	365		346 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
360	366		347purposes of Subsection (8)(a), the commission may designate a federal form as being
361	367		348substantially similar to a form described in Subsection (8)(a)(i) or (ii) if:
362	368		349 (i) for purposes of federal individual income taxes a different federal form contains
363	369		350substantially similar information to a form described in Subsection (8)(a)(i) or (ii); or
364	370		351 (ii) the Internal Revenue Service replaces a form described in Subsection (8)(a)(i) or
365	371		352(ii) with a different federal form.
366	372		353 (9) (a) Subject to Subsection (9)(b), a pass-through entity shall file with the
367	373		354commission in an electronic format approved by the commission a [Utah Schedule K-1, or a
368	374		355substantially similar] form designated by the commission, providing information for each final
369	375		356pass-through entity taxpayer of a pass-through entity that elected to pay a tax in accordance
370	376		357with Subsection 59-10-1403.2(2).
371	377		358 (b) The pass-through entity shall file [a] the form described in Subsection (9)(a) [with
372	378		359the pass-through entity's return.] on or before the last day of the pass-through entity's taxable
373	379		360year.
374	380		361 Section 4. Section 59-10-1045 is amended to read:
375	381		362 59-10-1045. Nonrefundable tax credit for taxes paid by pass-through entity.
376	382		363 (1) As used in this section, "taxed pass-through entity taxpayer" means a resident or
377	383		364nonresident individual who:
378		-	365 (a) has income attributed to the individual by a pass-through entity; ~~H.B. 56 Enrolled Copy~~
379		-	~~- 14 -~~
380		-	~~366 (b) receives the income described in Subsection (1)(a) after the pass-through entity~~
	384	+	365 (a) has income attributed to the individual by a pass-through entity;
	385	+	366 (b) receives the income described in Subsection (1)(a) after the pass-through entity 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	386	+	- 13 -
381	387		367pays the tax described in Subsection 59-10-1403.2(2); and
382	388		368 (c) adds the amount of tax paid on the income described in Subsection (1)(a) to
383	389		369adjusted gross income in accordance with Subsection 59-10-114(1)(i).
384	390		370 (2) (a) A taxed pass-through entity taxpayer may claim a nonrefundable tax credit for
385	391		371the taxes imposed under Subsection 59-10-1403.2(2).
386	392		372 (b) The tax credit is equal to the amount of the tax paid under Subsection
387	393		37359-10-1403.2(2) by the pass-through entity on the income attributed to the taxed pass-through
388	394		374entity taxpayer.
389	395		375 (3) (a) A taxed pass-through entity taxpayer may carry forward the amount of the tax
390	396		376credit that exceeds the taxed pass-through [entity's] entity taxpayer's tax liability for a period
391	397		377that does not exceed the next five taxable years.
392	398		378 (b) A taxed pass-through entity taxpayer may not carry back the amount of the tax
393	399		379credit that exceeds the taxed pass-through [entity's] entity taxpayer's tax liability for the taxable
394	400		380year.
395	401		381 Section 5. Section 59-10-1402 is amended to read:
396	402		382 59-10-1402. Definitions.
397	403		383 As used in this part:
398	404		384 (1) "Addition, subtraction, or adjustment" means:
399	405		385 (a) for a pass-through entity taxpayer that is classified as a C corporation for federal
400	406		386income tax purposes, under Chapter 7, Corporate Franchise and Income Taxes:
401	407		387 (i) an addition to unadjusted income described in Section 59-7-105; or
402	408		388 (ii) a subtraction from unadjusted income described in Section 59-7-106;
403	409		389 (b) for a pass-through entity taxpayer that is classified as an individual, partnership, or
404	410		390S corporation for federal income tax purposes:
405	411		391 (i) an addition to or subtraction from adjusted gross income described in Section
406	412		39259-10-114; or
407		-	393 (ii) an adjustment to adjusted gross income described in Section 59-10-115; or Enrolled Copy H.B. 56
408		-	- 15 -
	413	+	393 (ii) an adjustment to adjusted gross income described in Section 59-10-115; or
409	414		394 (c) for a pass-through entity taxpayer that is classified as an estate or a trust for federal
410	415		395income tax purposes:
411	416		396 (i) an addition to or subtraction from unadjusted income described in Section
412		-	39759-10-202; or
	417	+	39759-10-202; or 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	418	+	- 14 -
413	419		398 (ii) an adjustment to unadjusted income described in Section 59-10-209.1.
414	420		399 (2) "Business income" means income arising from transactions and activity in the
415	421		400regular course of a pass-through entity's trade or business and includes income from tangible
416	422		401and intangible property if the acquisition, management, and disposition of the property
417	423		402constitutes integral parts of the pass-through entity's regular trade or business operations.
418	424		403 (3) "C corporation" means the same as that term is defined in Section 1361, Internal
419	425		404Revenue Code.
420	426		405 (4) "Commercial domicile" means the principal place from which the trade or business
421	427		406of a business entity is directed or managed.
422	428		407 (5) "Dependent beneficiary" means an individual who:
423	429		408 (a) is claimed as a dependent under Section 151, Internal Revenue Code, on another
424	430		409person's federal income tax return; and
425	431		410 (b) is a beneficiary of a trust that is a pass-through entity.
426	432		411 (6) "Derived from or connected with Utah sources" means:
427	433		412 (a) if a pass-through entity taxpayer is classified as a C corporation for federal income
428	434		413tax purposes, derived from or connected with Utah sources in accordance with Chapter 7, Part
429	435		4143, Allocation and Apportionment of Income - Utah UDITPA Provisions; or
430	436		415 (b) if a pass-through entity or pass-through entity taxpayer is classified as an estate,
431	437		416individual, partnership, S corporation, or a trust for federal income tax purposes, derived from
432	438		417or connected with Utah sources in accordance with Sections 59-10-117 and 59-10-118.
433	439		418 (7) (a) "Final pass-through entity taxpayer" means a pass-through entity taxpayer who
434	440		419is a resident or nonresident individual.
435	441		420 (b) "Final pass-through entity taxpayer" does not include:
436		-	421 (i) a resident or nonresident business entity; or H.B. 56 Enrolled Copy
437		-	- 16 -
	442	+	421 (i) a resident or nonresident business entity; or
438	443		422 (ii) a resident or nonresident estate or trust.
439	444		423 (8) "Nonbusiness income" means all income of a pass-through entity other than
440	445		424business income.
441	446		425 (9) "Nonresident business entity" means a business entity that does not have its
442	447		426commercial domicile in this state.
443	448		427 (10) "Nonresident pass-through entity taxpayer" means a pass-through entity taxpayer
444		-	428that is a:
	449	+	428that is a: 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	450	+	- 15 -
445	451		429 (a) nonresident individual; or
446	452		430 (b) nonresident business entity.
447	453		431 (11) "Pass-through entity" means a business entity that is:
448	454		432 (a) the following if classified as a partnership for federal income tax purposes:
449	455		433 (i) a general partnership;
450	456		434 (ii) a limited liability company;
451	457		435 (iii) a limited liability partnership; or
452	458		436 (iv) a limited partnership;
453	459		437 (b) an S corporation;
454	460		438 (c) an estate or trust with respect to which the estate's or trust's income, gain, loss,
455	461		439deduction, or credit is divided among and passed through to one or more pass-through entity
456	462		440taxpayers; or
457	463		441 (d) a business entity similar to Subsections (11)(a) through (c):
458	464		442 (i) with respect to which the business entity's income, gain, loss, deduction, or credit is
459	465		443divided among and passed through to one or more pass-through entity taxpayers; and
460	466		444 (ii) as defined by the commission by rule made in accordance with Title 63G, Chapter
461	467		4453, Utah Administrative Rulemaking Act.
462	468		446 (12) "Pass-through entity taxpayer" means a resident or nonresident individual, a
463	469		447resident or nonresident business entity, or a resident or nonresident estate or trust:
464	470		448 (a) that is:
465		-	449 (i) for a general partnership, a partner; Enrolled Copy H.B. 56
466		-	- 17 -
	471	+	449 (i) for a general partnership, a partner;
467	472		450 (ii) for a limited liability company, a member;
468	473		451 (iii) for a limited liability partnership, a partner;
469	474		452 (iv) for a limited partnership, a partner;
470	475		453 (v) for an S corporation, a shareholder;
471	476		454 (vi) for an estate or trust described in Subsection(11)(c), a beneficiary; or
472	477		455 (vii) for a business entity described in Subsection(11)(d), a member, partner,
473	478		456shareholder, or other title designated by the commission by rule made in accordance with Title
474	479		45763G, Chapter 3, Utah Administrative Rulemaking Act; and
475	480		458 (b) to which the income, gain, loss, deduction, or credit of a pass-through entity is
476		-	459passed through.
	481	+	459passed through. 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	482	+	- 16 -
477	483		460 (13) "Resident business entity" means a business entity that is not a nonresident
478	484		461business entity.
479	485		462 (14) "Resident pass-through entity taxpayer" means a pass-through entity taxpayer that
480	486		463is a:
481	487		464 (a) resident individual; or
482	488		465 (b) resident business entity.
483	489		466 (15) "Return" means a return that a pass-through entity taxpayer files:
484	490		467 (a) for a pass-through entity taxpayer that is classified as a C corporation for federal
485	491		468income tax purposes, under Chapter 7, Corporate Franchise and Income Taxes; or
486	492		469 (b) for a pass-through entity taxpayer that is classified as an estate, individual,
487	493		470partnership, S corporation, or a trust for federal income tax purposes, under this chapter.
488	494		471 (16) "S corporation" means the same as that term is defined in Section 1361, Internal
489	495		472Revenue Code.
490	496		473 (17) "Share of income, gain, loss, deduction, or credit of a pass-through entity" means:
491	497		474 (a) for a pass-through entity except for a pass-through entity that is an S corporation:
492	498		475 (i) for a resident pass-through entity taxpayer, the resident pass-through entity
493	499		476taxpayer's distributive share of income, gain, loss, deduction, or credit of the pass-through
494		-	477entity as determined under Section 704 et seq., Internal Revenue Code; and H.B. 56 Enrolled Copy
495		-	- 18 -
	500	+	477entity as determined under Section 704 et seq., Internal Revenue Code; and
496	501		478 (ii) for a nonresident pass-through entity taxpayer, the nonresident pass-through entity
497	502		479taxpayer's distributive share of income, gain, loss, deduction, or credit of the pass-through
498	503		480entity:
499	504		481 (A) as determined under Section 704 et seq., Internal Revenue Code; and
500	505		482 (B) derived from or connected with Utah sources; or
501	506		483 (b) for an S corporation:
502	507		484 (i) for a resident pass-through entity taxpayer, the resident pass-through entity
503	508		485taxpayer's pro rata share of income, gain, loss, deduction, or credit of the S corporation, as
504	509		486determined under Sec. 1366 et seq., Internal Revenue Code; or
505	510		487 (ii) for a nonresident pass-through entity taxpayer, the nonresident pass-through entity
506	511		488taxpayer's pro rata share of income, gain, loss, deduction, or credit of the S corporation:
507	512		489 (A) as determined under Section 1366 et seq., Internal Revenue Code; and
508		-	490 (B) derived from or connected with Utah sources.
	513	+	490 (B) derived from or connected with Utah sources. 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	514	+	- 17 -
509	515		491 (18) "Statement of dependent beneficiary income" means a statement:
510	516		492 (a) signed by the person who claims a dependent beneficiary as a dependent under
511	517		493Section 151, Internal Revenue Code, on the person's federal income tax return for the taxable
512	518		494year;
513	519		495 (b) attesting that the dependent is a dependent beneficiary; and
514	520		496 (c) indicating that the person expects that the dependent beneficiary's adjusted gross
515	521		497income for the taxable year will not exceed the basic standard deduction for the dependent
516	522		498beneficiary, as calculated under Section 63, Internal Revenue Code, for that taxable year.
517	523		499 (19) "Voluntary taxable income" means the sum of a pass-through entity's income that
518	524		500is:
519	525		501 (a) attributed to a final pass-through entity taxpayer who is a resident individual unless
520	526		502the income is taxed by another state of the United States, the District of Columbia, or
521	527		503possession of the United States; and
522	528		504 (b) (i) business income and nonbusiness income that is derived from or connected with
523		-	505Utah sources; and Enrolled Copy H.B. 56
524		-	- 19 -
	529	+	505Utah sources; and
525	530		506 (ii) attributed to a final pass-through entity taxpayer who is a nonresident individual.
526	531		507 Section 6. Section 59-10-1403 is amended to read:
527	532		508 59-10-1403. Income tax treatment of a pass-through entity -- Returns --
528	533		509Classification same as under Internal Revenue Code.
529	534		510 (1) Subject to Subsection (3) and except as provided in Subsection 59-10-1403.2(2), a
530	535		511pass-through entity is not subject to a tax imposed by this chapter.
531	536		512 (2) Except as provided in Section 59-10-1403.3, the income, gain, loss, deduction, or
532	537		513credit of a pass-through entity shall be passed through to one or more pass-through entity
533	538		514taxpayers as provided in this part.
534	539		515 (3) A pass-through entity is subject to the return filing requirements of Sections
535	540		51659-10-507, 59-10-514, and 59-10-516.
536	541		517 (4) For purposes of taxation under this title, a pass-through entity that transacts
537	542		518business in the state shall be classified in the same manner as the pass-through entity is
538	543		519classified for federal income tax purposes.
539	544		520 (5) (a) If a change is made in a pass-through entity's net income or loss on the
540		-	521pass-through entity's federal income tax return because of an action of the federal government,
	545	+	521pass-through entity's federal income tax return because of an action of the federal government, 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	546	+	- 18 -
541	547		522the pass-through entity shall file with the commission within 90 days after the date of a final
542	548		523determination of the action:
543	549		524 (i) a copy of the pass-through entity's amended federal income tax return or federal
544	550		525adjustment; and
545	551		526 (ii) an amended state income tax return that conforms with the changes made in the
546	552		527pass-through entity's amended federal income tax return.
547	553		528 (b) If a change is made in a pass-through entity's net income on the pass-through
548	554		529entity's federal income tax return because the pass-through entity files an amended federal
549	555		530income tax return, the pass-through entity shall file with the commission, within 90 days after
550	556		531the date the taxpayer files the amended federal income tax return:
551	557		532 (i) a copy of the pass-through entity's amended federal income tax return; and
552		-	533 (ii) an amended state income tax return that conforms with the changes made in the H.B. 56 Enrolled Copy
553		-	- 20 -
	558	+	533 (ii) an amended state income tax return that conforms with the changes made in the
554	559		534pass-through entity's amended federal income tax return.
555	560		535 Section 7. Section 59-10-1403.2 is amended to read:
556	561		536 59-10-1403.2. Pass-through entity payment or withholding of tax on behalf of a
557	562		537pass-through entity taxpayer -- Exceptions to payment or withholding requirement --
558	563		538Procedures and requirements -- Failure to pay or withhold a tax on behalf of a
559	564		539pass-through entity taxpayer.
560	565		540 (1) (a) Except as provided in Subsections (1)(b) and (2), for a taxable year, a
561	566		541pass-through entity shall pay or withhold a tax:
562	567		542 (i) on:
563	568		543 (A) the business income of the pass-through entity; and
564	569		544 (B) the nonbusiness income of the pass-through entity derived from or connected with
565	570		545Utah sources; and
566	571		546 (ii) on behalf of a pass-through entity taxpayer.
567	572		547 (b) A pass-through entity is not required to pay or withhold a tax under Subsection
568	573		548(1)(a):
569	574		549 (i) on behalf of a final pass-through entity taxpayer who is a resident individual;
570	575		550 (ii) if the pass-through entity is an organization exempt from taxation under Subsection
571	576		55159-7-102(1)(a);
572		-	552 (iii) if the pass-through entity:
	577	+	552 (iii) if the pass-through entity: 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	578	+	- 19 - House Floor Amendments 2-3-2023 pf/se1
573	579		553 (A) is a plan under Section 401, 408, or 457, Internal Revenue Code; and
574	580		554 (B) is not required to file a return under Chapter 7, Corporate Franchise and Income
575	581		555Taxes, or this chapter;
576	582		556 (iv) if the pass-through entity is a publicly traded partnership:
577	583		557 (A) as defined in Section 7704(b), Internal Revenue Code;
578	584		558 (B) that is classified as a partnership for federal income tax purposes; and
579	585		559 (C) that files an annual information return reporting the following with respect to each
580	586		560partner of the publicly traded partnership with income derived from or connected with Utah
581		-	561sources that exceeds $500 in a taxable year: Enrolled Copy H.B. 56
582		-	- 21 -
	587	+	561sources that exceeds $500 in a taxable year:
583	588		562 (I) the partner's name;
584	589		563 (II) the partner's address;
585	590		564 (III) the partner's taxpayer identification number; and
586	591		565 (IV) other information required by the commission; or
587	592		566 (v) on behalf of a final pass-through entity taxpayer that is a nonresident individual if
588	593		567the pass-through entity pays the tax described in Subsection (2).
589	594		568 (2) (a) For each taxable year that begins on or after January 1, 2022, but begins on or
590	595		569before December 31, 2025, a pass-through entity that is not a disregarded pass-through entity
591		-	570may elect to pay a tax in an amount equal to the product of:
	596	+	570may elect to pay a tax in an amount equal to º the product of » :
592	597		571 (i) the percentage listed in Subsection 59-10-104(2); and
593	598		572 (ii) voluntary taxable income.
594	599		573 (b) A pass-through entity that elects to pay the tax in accordance with Subsection (2)(a)
595	600		574shall notify any final pass-through entity taxpayer of that election.
596	601		575 (c) A pass-through entity that pays a tax described in Subsection (2)(a) shall provide to
597	602		576each final pass-through entity taxpayer a statement that states:
598	603		577 (i) the amount of tax paid under Subsection (2)(a) on the income attributed to the final
599	604		578pass-through entity taxpayer[.]; and
600	605		579 (ii) the amount of tax paid to another state by the pass-through entity on income:
601	606		580 (A) attributed to the final pass-through entity taxpayer; and
602	607		581 (B) that the commission determines is substantially similar to the tax under Subsection
603	608		582(2)(a).
604		-	583 (d) A payment of the tax described in Subsection (2)(a) on or before the last day of the
	609	+	583 (d) A payment of the tax described in Subsection (2)(a) on or before the last day of the 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	610	+	- 20 -
605	611		584taxable year:
606	612		585 (i) is an irrevocable election to be subject to the tax for the taxable year; and [.]
607	613		586 (ii) may not be refunded.
608	614		587 (3) (a) Subject to Subsection (3)(b), the tax a pass-through entity shall pay or withhold
609	615		588on behalf of a pass-through entity taxpayer for a taxable year is an amount:
610		-	589 (i) determined by the commission by rule made in accordance with Title 63G, Chapter H.B. 56 Enrolled Copy
611		-	- 22 -
	616	+	589 (i) determined by the commission by rule made in accordance with Title 63G, Chapter
612	617		5903, Utah Administrative Rulemaking Act; and
613	618		591 (ii) that the commission estimates will be sufficient to pay the tax liability of the
614	619		592pass-through entity taxpayer under this chapter with respect to the income described in
615	620		593Subsection (1)(a)(i) or (2)(a)(ii) of that pass-through entity for the taxable year.
616	621		594 (b) The rules the commission makes in accordance with Subsection (3)(a):
617	622		595 (i) except as provided in Subsection (3)(c):
618	623		596 (A) shall:
619	624		597 (I) for a pass-through entity except for a pass-through entity that is an S corporation,
620	625		598take into account items of income, gain, loss, deduction, and credit as analyzed on the schedule
621	626		599for reporting partners' distributive share items as part of the federal income tax return for the
622	627		600pass-through entity; or
623	628		601 (II) for a pass-through entity that is an S corporation, take into account items of
624	629		602income, gain, loss, deduction, and credit as reconciled on the schedule for reporting
625	630		603shareholders' pro rata share items as part of the federal income tax return for the pass-through
626	631		604entity; and
627	632		605 (B) notwithstanding Subsection (3)(b)(ii)(D), take into account the refundable tax
628	633		606credit provided in Section 59-6-102; and
629	634		607 (ii) may not take into account the following items if taking those items into account
630	635		608does not result in an accurate estimate of a pass-through entity taxpayer's tax liability under this
631	636		609chapter for the taxable year:
632	637		610 (A) a capital loss;
633	638		611 (B) a passive loss;
634	639		612 (C) another item of deduction or loss if that item of deduction or loss is generally
635	640		613subject to significant reduction or limitation in calculating:
636		-	614 (I) for a pass-through entity taxpayer that is classified as a C corporation for federal
	641	+	614 (I) for a pass-through entity taxpayer that is classified as a C corporation for federal 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	642	+	- 21 -
637	643		615income tax purposes, unadjusted income as defined in Section 59-7-101;
638	644		616 (II) for a pass-through entity that is classified as an individual, partnership, or S
639		-	617corporation for federal income tax purposes, adjusted gross income; or Enrolled Copy H.B. 56
640		-	- 23 -
	645	+	617corporation for federal income tax purposes, adjusted gross income; or
641	646		618 (III) for a pass-through entity that is classified as an estate or a trust for federal income
642	647		619tax purposes, unadjusted income as defined in Section 59-10-103; or
643	648		620 (D) a tax credit allowed against a tax imposed under:
644	649		621 (I) Chapter 7, Corporate Franchise and Income Taxes; or
645	650		622 (II) this chapter.
646	651		623 (c) The rules the commission makes in accordance with Subsection (3)(a) may
647	652		624establish a method for taking into account items of income, gain, loss, deduction, or credit of a
648	653		625pass-through entity if:
649	654		626 (i) for a pass-through entity except for a pass-through entity that is an S corporation,
650	655		627the pass-through entity does not analyze the items of income, gain, loss, deduction, or credit on
651	656		628the schedule for reporting partners' distributive share items as part of the federal income tax
652	657		629return for the pass-through entity; or
653	658		630 (ii) for a pass-through entity that is an S corporation, the pass-through entity does not
654	659		631reconcile the items of income, gain, loss, deduction, or credit on the schedule for reporting
655	660		632shareholders' pro rata share items as part of the federal income tax return for the pass-through
656	661		633entity.
657	662		634 (4) (a) Except as provided in Subsection (4)(b), a pass-through entity shall remit to the
658	663		635commission the tax the pass-through entity pays or withholds on behalf of a pass-through entity
659	664		636taxpayer under this section:
660	665		637 (i) on or before the due date of the pass-through entity's return, not including
661	666		638extensions; and
662	667		639 (ii) on a form provided by the commission.
663	668		640 (b) A pass-through entity shall remit the tax described in Subsection (2) on or before
664	669		641the last day of the pass-through entity's taxable year.
665	670		642 (c) The commission shall consider only the amount of tax remitted as provided in
666	671		643Subsection (4)(b), on or before the last day of the pass-through entity's taxable year as a
667	672		644payment described in Subsection (2).
668		-	645 (d) Except as provided in Subsection (1)(b), a pass-through entity that files an amended H.B. 56 ~~Enrolled Copy~~
669		-	- 24 -
	673	+	645 (d) Except as provided in Subsection (1)(b), a pass-through entity that files an amended 1st Sub. (Buff) H.B. 56 01-31-23 11:01 AM
	674	+	- 22 -
670	675		646return under this part shall pay or withhold tax on any increase in the income described in
671	676		647Subsection (1)(a)(i) on behalf of the pass-through entity taxpayer and remit that tax to the
672	677		648commission.
673	678		649 (5) A pass-through entity shall provide a statement to a pass-through entity taxpayer on
674	679		650behalf of whom the pass-through entity pays or withholds a tax under this section showing the
675	680		651amount of tax the pass-through entity pays or withholds under this section for the taxable year
676	681		652on behalf of the pass-through entity taxpayer.
677	682		653 (6) Notwithstanding Section 59-1-401 or 59-1-402, the commission may not collect an
678	683		654amount under this section for a taxable year from a pass-through entity and shall waive any
679	684		655penalty and interest on that amount if:
680	685		656 (a) the pass-through entity fails to pay or withhold the tax on the amount as required by
681	686		657this section on behalf of the pass-through entity taxpayer;
682	687		658 (b) the pass-through entity taxpayer:
683	688		659 (i) files a return on or before the due date for filing the pass-through entity's return,
684	689		660including extensions; and
685	690		661 (ii) on or before the due date including extensions described in Subsection (6)(b)(i),
686	691		662pays the tax on the amount for the taxable year:
687	692		663 (A) if the pass-through entity taxpayer is classified as a C corporation for federal
688	693		664income tax purposes, under Chapter 7, Corporate Franchise and Income Taxes; or
689	694		665 (B) if the pass-through entity taxpayer is classified as an estate, individual, partnership,
690	695		666S corporation, or a trust for federal income tax purposes, under this chapter; and
691	696		667 (c) the pass-through entity applies to the commission.
692	697		668 (7) Notwithstanding Section 59-1-401 or 59-1-402, the commission may not collect an
693	698		669amount under this section for a taxable year from a pass-through entity that is a trust and shall
694	699		670waive any penalty and interest on that amount if:
695	700		671 (a) the pass-through entity fails to pay or withhold the tax on the amount as required by
696	701		672this section on behalf of a dependent beneficiary;
697		-	673 (b) the pass-through entity applies to the commission; and Enrolled Copy H.B. 56
698		-	- 25 -
	702	+	673 (b) the pass-through entity applies to the commission; and
699	703		674 (c) (i) the dependent beneficiary complies with the requirements of Subsection (6)(b);
700	704		675or
701		-	676 (ii) (A) the dependent beneficiary's adjusted gross income for the taxable year does not
	705	+	676 (ii) (A) the dependent beneficiary's adjusted gross income for the taxable year does not 01-31-23 11:01 AM 1st Sub. (Buff) H.B. 56
	706	+	- 23 - House Floor Amendments 2-3-2023 pf/se1
702	707		677exceed the basic standard deduction for the dependent beneficiary, as calculated under Section
703	708		67863, Internal Revenue Code, for that taxable year; and
704	709		679 (B) the trustee of the trust retains a statement of dependent beneficiary income on
705	710		680behalf of the dependent beneficiary.
706	711		681 (8) If a pass-through entity would have otherwise qualified for a waiver of a penalty
707	712		682and interest under Subsection (7), except that the trustee of a trust has not applied to the
708	713		683commission as required by Subsection (7)(b) or retained the statement of dependent beneficiary
709	714		684income required by Subsection (7)(c)(ii)(B), it is a rebuttable presumption in an audit that the
710	715		685pass-through entity would have otherwise qualified for the waiver of the penalty and interest
711	716		686under Subsection (7).
712	717		687 Section 8. Retrospective operation.
713	718		688 (1) The following sections have retrospective operation for a taxable year beginning on
714		-	689or after January 1, 2022:
	719	+	689or after January 1, º [2023] 2022 » :
715	720		690 (a) Section 59-10-1403; and
716	721		691 (b) Section 59-10-1403.2.