Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 39 (2016GS)

Sponsor

Rep. Eliason, S.

Final action

Governor Signed 3/21/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies the date for a pass-through entity to file a tax return; and
• makes technical corrections.

Every vote on this bill

Bill text

PASS-THROUGH ENTITY RETURN FILING DATE
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Steve Eliason
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill modifies the date for a pass-through entity to file a tax return.
Highlighted Provisions:
This bill:
▸ modifies the date for a pass-through entity to file a tax return; and
▸ makes technical corrections.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-7-701
, as last amended by Laws of Utah 2009, Chapter 312
59-10-507
, as last amended by Laws of Utah 2009, Chapter 312
59-10-514
, as last amended by Laws of Utah 2008, Chapter 382
59-10-518
, as last amended by Laws of Utah 2007, Chapter 28
59-10-1403
, as last amended by Laws of Utah 2009, Chapter 312
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-7-701
 is amended to read:
59-7-701.
Taxation of S corporations.
(1) Except as provided in Section 
59-7-102
 and subject to the other provisions of this
part, beginning on July 1, 1994, and ending on the last day of the taxable year that begins on or
after January 1, 2012, but begins on or before December 31, 2012, an S corporation is subject
to taxation in the same manner as that S corporation is taxed under Subchapter S - Tax
Treatment of S Corporations and Their Shareholders, Sec. 1361 et seq., Internal Revenue Code.
(2) An S corporation is taxed at the tax rate provided in Section 
59-7-104
.
(3) The business income and nonbusiness income of an S corporation is subject to Part
3, Allocation and Apportionment of Income - Utah UDITPA Provisions.
(4) An S corporation having income derived from or connected with Utah sources shall
make a return in accordance with [
Section
] 
Sections
59-10-507
and 
59-10-514
.
(5) An S corporation shall make payments of estimated tax as required by Section
59-7-504
.
(6) An S corporation is subject to Chapter 10, Part 14, Pass-Through Entities and
Pass-Through Entity Taxpayers Act.
(7) A pass-through entity taxpayer as defined in Section 
59-10-1402
 of an S
corporation is subject to Chapter 10, Part 14, Pass-Through Entities and Pass-Through Entity
Taxpayers Act.
(8) Provisions under this chapter governing the following apply to an S corporation:
(a) an assessment;
(b) a penalty;
(c) a refund; or
(d) a record required for an S corporation.
[
(9) (a) During the 2011 interim, the Revenue and Taxation Interim Committee shall
study the fiscal impacts of:
]
[
(i) the enactment of Laws of Utah 2009, Chapter 312; and
]
[
(ii) the taxation of S corporations under this part.
]
[
(b) On or before November 30, 2011, the Revenue and Taxation Interim Committee
shall report its findings and recommendations on the study to the Executive Appropriations
Committee.
]
Section 2. Section 
59-10-507
 is amended to read:
59-10-507.
Return by a pass-through entity.
(1) As used in this section:
(a) "Pass-through entity" is as defined in Section 
59-10-1402
.
(b) "Taxable year" means a year or other time period that would be a taxable year of a
pass-through entity if the pass-through entity were subject to taxation under this chapter.
(2) A pass-through entity having any income derived from or connected with Utah
sources shall make a return for the taxable year [
as prescribed by the commission
] 
in
accordance with Section 
59-10-514
.
Section 3. Section 
59-10-514
 is amended to read:
59-10-514.
Return filing requirements -- Rulemaking authority.
(1) Subject to Subsection (3) 
and Section 
59-10-518
:
(a) an individual income tax return filed for a tax imposed in accordance with Part 1,
Determination and Reporting of Tax Liability and Information, shall be filed with the
commission[
:
] 
on or before the day on which a federal individual income tax return is due
under the Internal Revenue Code;
[
(i) except as provided in Subsection (1)(a)(ii), on or before the 15th day of the fourth
month following the last day of the taxpayer's taxable year; or
]
[
(ii) on or before the day on which a federal individual income tax return is due under
the Internal Revenue Code if the Internal Revenue Code provides a due date for filing that
federal individual income tax return that is different from the due date described in Subsection
(1)(a)(i);
]
(b) a fiduciary income tax return filed for a tax imposed in accordance with Part 2,
Trusts and Estates, shall be filed with the commission[
:
] 
on or before the day on which a
federal return for estates and trusts is due under the Internal Revenue Code; or
[
(i) except as provided in Subsection (1)(b)(ii), on or before the 15th day of the fourth
month following the last day of the taxpayer's taxable year; or
]
[
(ii) on or before the day on which a federal tax return for estates and trusts is due
under the Internal Revenue Code if the Internal Revenue Code provides a due date for filing
that federal tax return for estates and trusts that is different from the due date described in
Subsection (1)(b)(i); or
]
(c) a return filed in accordance with Section 
59-10-507
[
,
] shall be filed with the
commission[
:
] 
on or before the 15th day of the fourth month following the last day of the
taxpayer's taxable year.
[
(i) except as provided in Subsection (1)(c)(ii), in accordance with Section 
59-10-507
;
or
]
[
(ii) on or before the day on which a federal return of partnership income is due under
the Internal Revenue Code if the Internal Revenue Code provides a due date for filing that
federal return of partnership income that is different from the due date described in Subsection
(1)(c)(i).
]
(2) A person required to make and file a return under this chapter shall, without
assessment, notice, or demand, pay any tax due:
(a) to the commission; and
(b) before the due date for filing the return [
determined
]
,
 without regard to any
extension of time for filing the return.
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules prescribing what constitutes filing a return with the commission.
Section 4. Section 
59-10-518
 is amended to read:
59-10-518.
Time for performance of acts when last day falls on Saturday,
Sunday, or legal holiday.
(1) As used in this section, "legal holiday" means a legal holiday in this state.
(2) [
Subject to Section 
59-10-514
, if
] 
If
 the last day prescribed under authority of this
chapter for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of
the act shall be considered to be timely if it is performed on the next succeeding day which is
not a Saturday, Sunday, or a legal holiday.
(3) For purposes of this section, the last day for the performance of any act shall be
determined by including any authorized extension of time.
Section 5. Section 
59-10-1403
 is amended to read:
59-10-1403.
Income tax treatment of a pass-through entity -- Returns --
Classification same as under Internal Revenue Code.
(1) Subject to Subsection (3), a pass-through entity is not subject to a tax imposed by
this chapter.
(2) The income, gain, loss, deduction, or credit of a pass-through entity shall be passed
through to one or more pass-through entity taxpayers as provided in this part.
(3) A pass-through entity is subject to the return filing requirements of [
Section
]
Sections
59-10-507
and 
59-10-514
.
(4) A pass-through entity that transacts business in the state shall be classified for
purposes of taxation under this title in the same manner as the pass-through entity is classified
for federal income tax purposes.
Section 6. 
Retrospective operation.
This bill has retrospective operation for a taxable year beginning on or after January 1,
2016.