Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 48 First Substitute (2022GS)

Sponsor

Sen. McCay, D.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• updates the language that the State Tax Commission prints on certain documents related to individual income tax returns;
• clarifies that when a tax credit that allows a carry forward expires or is repealed, the applicable carry forward remains in effect;
• provides that a claimant may not claim a social security tax credit or a military retirement tax credit, if a retirement tax credit is claimed on the same return; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

INCOME TAX MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
House Sponsor: 
Mark A. Strong
LONG TITLE
General Description:
This bill modifies provisions related to income tax.
Highlighted Provisions:
This bill:
▸ updates the language that the State Tax Commission prints on certain documents
related to individual income tax returns;
▸ clarifies that when a tax credit that allows a carry forward expires or is repealed, the
applicable carry forward remains in effect;
▸ provides that a claimant may not claim a social security tax credit or a military
retirement tax credit, if a retirement tax credit is claimed on the same return; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-10-103.1
, as last amended by Laws of Utah 2011, Chapter 410
59-10-1019
, as last amended by Laws of Utah 2021, Chapters 68 and 428
59-10-1042
, as enacted by Laws of Utah 2021, Chapter 428
59-10-1043
, as enacted by Laws of Utah 2021, Chapter 68
ENACTS:
59-7-538
, Utah Code Annotated 1953
59-10-552
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-7-538
 is enacted to read:
 59-7-538.
Carry forward of expired or repealed tax credit.
When a nonrefundable corporate income tax credit under Part 6, Credits, expires or is
repealed, the commission shall allow a taxpayer to carry forward any amount of the tax credit
that remains for the period of time described in the tax credit for the taxable year in which the
taxpayer first claimed the tax credit.
Section 2. Section 
59-10-103.1
 is amended to read:
59-10-103.1.
Information to be contained on individual income tax returns or
booklets.
(1) The commission shall print the phrase "all state income tax dollars [
fund education
]
support education, children, and individuals with disabilities
" on:
(a) the first page of an individual income tax return; and
(b) the cover page of an individual income tax forms and instructions booklet.
(2) The commission shall include on an individual income tax return a statement for a
property owner to declare that the property owner no longer qualifies to receive a residential
exemption authorized under Section 
59-2-103
 for that property owner's primary residence.
Section 3. Section 
59-10-552
 is enacted to read:
 59-10-552.
Carry forward of expired or repealed tax credit.
When a nonrefundable individual income tax credit, under Part 10, Nonrefundable Tax
Credit Act, expires or is repealed, the commission shall allow a claimant, estate, or trust to
carry forward any amount of the tax credit that remains for the period of time described in the
tax credit for the taxable year in which the estate, claimant, or estate first claimed the tax credit.
Section 4. Section 
59-10-1019
 is amended to read:
59-10-1019.
Definitions -- Nonrefundable retirement tax credit.
(1) As used in this section:
(a) "Eligible claimant" means a claimant, regardless of whether that claimant is retired,
who was born on or before December 31, 1952.
(b) "Head of household filing status" means the same as that term is defined in Section
59-10-1018
.
(c) "Joint filing status" means the same as that term is defined in Section 
59-10-1018
.
(d) "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.
(e) "Modified adjusted gross income" means the sum of the following for an eligible
claimant or, if the eligible claimant's return under this chapter is allowed a joint filing status,
the eligible claimant and the eligible claimant's spouse:
(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)(e)(i); and
(iii) any addition to adjusted gross income required by Section 
59-10-114
 for the
taxable year described in Subsection (1)(e)(i).
(f) "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 Subsections (3) and (4), each
eligible claimant may claim a nonrefundable tax credit of $450 against taxes otherwise due
under this part.
(3) [
(a)
] An eligible claimant may not:
[
(i)
] 
(a)
 carry forward or carry back the amount of a tax credit under this section that
exceeds the eligible claimant's tax liability for the taxable year; or
[
(ii)
] 
(b)
 claim a tax credit under this section [
and
] 
for a taxable year if
 a tax credit
under Section 
59-10-1042
 or 
59-10-1043
is claimed on the claimant's return for the same
taxable year
.
[
(b) An eligible claimant who qualifies for a tax credit under this section and a tax
credit under Section 
59-10-1042
 or 
59-10-1043
 may elect whether to claim a tax credit under
this section or a tax credit under Section 
59-10-1042
 or 
59-10-1043
.
]
(4) The tax credit allowed by Subsection (2) claimed on a 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.
Section 5. Section 
59-10-1042
 is amended to read:
59-10-1042.
Nonrefundable tax credit for social security benefits.
(1) As used in this section:
(a) "Head of household filing status" means the same as that term is defined in Section
59-10-1018
.
(b) "Joint filing status" means the same as that term is defined in Section 
59-10-1018
.
(c) "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.
(d) "Modified adjusted gross income" means the sum of the following for a claimant
or, if the claimant's return under this chapter is allowed a joint filing status, the claimant and
the claimant's spouse:
(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)(d)(i); and
(iii) any addition to adjusted gross income required by Section 
59-10-114
 for the
taxable year described in Subsection (1)(d)(i).
(e) "Single filing status" means a single individual who files a single federal individual
income tax return for the taxable year.
(f) "Social security benefit" means an amount received by a claimant as a monthly
benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
(2) Except as provided in Section 
59-10-1002.2
 and Subsections (3) and (4), each
claimant on a return that receives a social security benefit may claim a nonrefundable tax credit
against taxes otherwise due under this part equal to the product of:
(a) the percentage listed in Subsection 
59-10-104
(2); and
(b) the claimant's social security benefit that is included in adjusted gross income on
the claimant's federal income tax return for the taxable year.
(3) [
(a)
] A claimant may not:
[
(i)
] 
(a)
 carry forward or carry back the amount of a tax credit under this section that
exceeds the claimant's tax liability for the taxable year; or
[
(ii)
] 
(b)
 claim a tax credit under this section [
and
] 
for a taxable year if
 a tax credit
under Section 
59-10-1019
is claimed on the claimant's return for the same taxable year
.
[
(b) A claimant that qualifies for a tax credit under this section and a tax credit under
Section 
59-10-1019
 may elect whether to claim a tax credit under this section or a tax credit
under Section 
59-10-1019
.
]
(4) The tax credit allowed by Subsection (2) claimed on a 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, $25,000;
(b) for a federal individual income tax return that is allowed a single filing status,
$30,000;
(c) for a federal individual income tax return that is allowed a head of household filing
status, $50,000; or
(d) for a return under this chapter that is allowed a joint filing status, $50,000.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules governing the calculation and method for claiming the tax credit
described in this section.
Section 6. Section 
59-10-1043
 is amended to read:
59-10-1043.
Nonrefundable tax credit for military retirement.
(1) As used in this section:
[
(a)
] 
(a)
 (i) "Military retirement pay" means retirement pay, including survivor benefits,
that relates to service in the armed forces[
, including service in the Reserves or the National
Guard
] 
or the reserve components, as described in 10 U.S.C. Sec. 10101
.
(ii) "Military retirement pay" does not include:
(A) Social Security income;
(B) 401(k) or IRA distributions; or
(C) income from other sources.
(b) "Survivor benefits" means the retired pay portion of the benefits described in 10
U.S.C. Secs. 1447 through 1455.
(2) Except as provided in Section 
59-10-1002.2
, a claimant who receives military
retirement pay may claim a nonrefundable tax credit against taxes equal to the product of:
(a) the percentage listed in Subsection 
59-10-104
(2); and
(b) the amount of military retirement pay that is included in adjusted gross income on
the claimant's federal income tax return for the taxable year.
(3) [
(a)
] A claimant may not:
[
(i)
] 
(a)
 carry forward or carry back the amount of a tax credit that exceeds the
claimant's tax liability for the taxable year; or
[
(ii)
] 
(b)
 claim a tax credit under this section [
and
] 
for a taxable year if
 a tax credit
under Section 
59-10-1019
is claimed on the claimant's return
 for the same taxable year.
[
(b) A claimant that qualifies for a tax credit under this section and a tax credit under
Section 
59-10-1019
 may elect whether to claim a tax credit under this section or a tax credit
under Section 
59-10-1019
.
]
Section 7. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.
Section 8. 
Retrospective operation.
The changes to Sections 
59-10-1019
, 
59-10-1042
, and 
59-10-1043
 have retrospective
operation for a taxable year beginning on or after January 1, 2021.