Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 277 First Substitute (2018GS)

Sponsor

Rep. Westwood, J.

Final action

House/ filed 3/8/2018

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• repeals the requirement that certain retirees be born on or before a certain date to be eligible for nonrefundable retirement tax credits; and
• makes technical changes.

Every vote on this bill

Bill text

NONREFUNDABLE RETIREMENT TAX CREDITS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: John R. Westwood
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies the Individual Income Tax Act by amending provisions relating to
nonrefundable retirement tax credits.
Highlighted Provisions:
This bill:
▸ repeals the requirement that certain retirees be born on or before a certain date to be
eligible for nonrefundable retirement tax credits; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-10-1019
, as renumbered and amended by Laws of Utah 2008, Chapter 389
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-10-1019
 is amended to read:
59-10-1019.
Definitions -- Nonrefundable retirement tax credits.
(1) As used in this section:
(a) "Eligible age 65 or older retiree" means a claimant, regardless of whether that
claimant is retired, who[
: (i)
] is 65 years of age or older[
; and
]
.
[
(ii) was born on or before December 31, 1952.
]
(b) (i) "Eligible retirement income" means income received by an eligible under age 65
retiree as a pension or annuity if that pension or annuity is:
(A) paid to the eligible under age 65 retiree or the surviving spouse of an eligible under
age 65 retiree; and
(B) (I) paid from an annuity contract purchased by an employer under a plan that meets
the requirements of Section 404(a)(2), Internal Revenue Code;
(II) purchased by an employee under a plan that meets the requirements of Section 408,
Internal Revenue Code; or
(III) paid by:
(Aa) the United States;
(Bb) a state or a political subdivision of a state; or
(Cc) the District of Columbia.
(ii) "Eligible retirement income" does not include amounts received by the spouse of a
living eligible under age 65 retiree because of the eligible under age 65 retiree's having been
employed in a community property state.
(c) "Eligible under age 65 retiree" means a claimant, regardless of whether that
claimant is retired, who:
(i) is younger than 65 years of age; 
and
[
(ii) was born on or before December 31, 1952; and
]
[
(iii)
] 
(ii)
 has eligible retirement income for the taxable year for which a tax credit is
claimed under this section.
(d) "Head of household filing status" is as defined in Section 
59-10-1018
.
(e) "Joint filing status" is as defined in Section 
59-10-1018
.
(f) "Married filing separately status" means a married individual who:
(i) does not file a single federal individual income tax return jointly with that married
individual's spouse for the taxable year; and
(ii) files a single federal individual income tax return for the taxable year.
(g) "Modified adjusted gross income" means the sum of an eligible age 65 or older
retiree's or eligible under age 65 retiree's:
(i) adjusted gross income for the taxable year for which a tax credit is claimed under
this section;
(ii) any interest income that is not included in adjusted gross income for the taxable
year described in Subsection (1)(g)(i); and
(iii) any addition to adjusted gross income required by Section 
59-10-114
 for the
taxable year described in Subsection (1)(g)(i).
(h) "Single filing status" means a single individual who files a single federal individual
income tax return for the taxable year.
(2) Except as provided in Section 
59-10-1002.2
 and subject to Subsections (3) through
(5):
(a) each eligible age 65 or older retiree may claim a nonrefundable tax credit of $450
against taxes otherwise due under this part; or
(b) each eligible under age 65 retiree may claim a nonrefundable tax credit against
taxes otherwise due under this part in an amount equal to the lesser of:
(i) $288; or
(ii) the product of:
(A) the eligible under age 65 retiree's eligible retirement income for the taxable year for
which the eligible under age 65 retiree claims a tax credit under this section; and
(B) 6%.
(3) A tax credit under this section may not be carried forward or carried back.
(4) The sum of the tax credits allowed by Subsection (2) claimed on one return filed
under this part shall be reduced by $.025 for each dollar by which modified adjusted gross
income for purposes of the return exceeds:
(a) for a federal individual income tax return that is allowed a married filing separately
status, $16,000;
(b) for a federal individual income tax return that is allowed a single filing status,
$25,000;
(c) for a federal individual income tax return that is allowed a head of household filing
status, $32,000; or
(d) for a return under this chapter that is allowed a joint filing status, $32,000.
(5) For purposes of determining the ownership of items of retirement income under this
section, common law doctrine shall be applied in all cases even though some items of
retirement income may have originated from service or investments in a community property
state.
Section 2. 
Retrospective operation.
This bill has retrospective operation for a taxable year beginning on or after January 1,
2018.
Legislative Review Note
Office of Legislative Research and General Counsel