| 1 | 1 | | H.B. 240 |
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| 2 | 2 | | LEGISLATIVE GENERAL COUNSEL |
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| 3 | 3 | | 6 Approved for Filing: A.V. Arthur 6 |
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| 4 | 4 | | 6 01-18-23 4:30 PM 6 |
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| 5 | 5 | | H.B. 240 |
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| 6 | 6 | | 1 INCOME TAX AMENDMENTS |
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| 7 | 7 | | 2 2023 GENERAL SESSION |
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| 8 | 8 | | 3 STATE OF UTAH |
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| 9 | 9 | | 4 Chief Sponsor: Nelson T. Abbott |
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| 10 | 10 | | 5 Senate Sponsor: ____________ |
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| 11 | 11 | | 6 |
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| 12 | 12 | | 7LONG TITLE |
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| 13 | 13 | | 8General Description: |
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| 14 | 14 | | 9 This bill modifies income tax provisions. |
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| 15 | 15 | | 10Highlighted Provisions: |
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| 16 | 16 | | 11 This bill: |
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| 17 | 17 | | 12 <amends the corporate franchise and income tax rates; and |
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| 18 | 18 | | 13 <amends the individual income tax rate. |
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| 19 | 19 | | 14Money Appropriated in this Bill: |
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| 20 | 20 | | 15 None |
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| 21 | 21 | | 16Other Special Clauses: |
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| 22 | 22 | | 17 This bill provides retrospective operation. |
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| 23 | 23 | | 18Utah Code Sections Affected: |
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| 24 | 24 | | 19AMENDS: |
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| 25 | 25 | | 20 59-7-104, as last amended by Laws of Utah 2022, Chapter 12 |
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| 26 | 26 | | 21 59-7-201, as last amended by Laws of Utah 2022, Chapter 12 |
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| 27 | 27 | | 22 59-10-104, as last amended by Laws of Utah 2022, Chapter 12 |
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| 28 | 28 | | 23 |
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| 29 | 29 | | 24Be it enacted by the Legislature of the state of Utah: |
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| 30 | 30 | | 25 Section 1. Section 59-7-104 is amended to read: |
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| 31 | 31 | | 26 59-7-104. Tax -- Minimum tax. |
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| 32 | 32 | | 27 (1) Each domestic and foreign corporation, except a corporation that is exempt under |
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| 33 | 33 | | *HB0240* H.B. 240 01-18-23 4:30 PM |
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| 34 | 34 | | - 2 - |
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| 35 | 35 | | 28Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable |
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| 36 | 36 | | 29income for the taxable year for the privilege of exercising the corporation's corporate franchise |
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| 37 | 37 | | 30or for the privilege of doing business in the state. |
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| 38 | 38 | | 31 (2) The tax shall be [4.85] 4.65% of a corporation's Utah taxable income. |
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| 39 | 39 | | 32 (3) The minimum tax a corporation shall pay under this chapter is $100. |
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| 40 | 40 | | 33 Section 2. Section 59-7-201 is amended to read: |
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| 41 | 41 | | 34 59-7-201. Tax -- Minimum tax. |
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| 42 | 42 | | 35 (1) There is imposed upon each corporation, except a corporation that is exempt under |
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| 43 | 43 | | 36Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is |
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| 44 | 44 | | 37derived from sources within this state other than income for any period that the corporation is |
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| 45 | 45 | | 38required to include in the corporation's tax base under Section 59-7-104. |
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| 46 | 46 | | 39 (2) The tax imposed by Subsection (1) shall be [4.85] 4.65% of a corporation's Utah |
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| 47 | 47 | | 40taxable income. |
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| 48 | 48 | | 41 (3) In no case shall the tax be less than $100. |
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| 49 | 49 | | 42 Section 3. Section 59-10-104 is amended to read: |
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| 50 | 50 | | 43 59-10-104. Tax basis -- Tax rate -- Exemption. |
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| 51 | 51 | | 44 (1) A tax is imposed on the state taxable income of a resident individual as provided in |
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| 52 | 52 | | 45this section. |
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| 53 | 53 | | 46 (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the |
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| 54 | 54 | | 47product of: |
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| 55 | 55 | | 48 (a) the resident individual's state taxable income for that taxable year; and |
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| 56 | 56 | | 49 (b) [4.85] 4.65%. |
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| 57 | 57 | | 50 (3) This section does not apply to a resident individual exempt from taxation under |
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| 58 | 58 | | 51Section 59-10-104.1. |
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| 59 | 59 | | 52 Section 4. Retrospective operation. |
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| 60 | 60 | | 53 This bill has retrospective operation for a taxable year beginning on or after January 1, |
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| 61 | 61 | | 542023. |
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