Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 59 Fourth Substitute (2022GS)

Sponsor

Sen. McCay, D.

Final action

Governor Signed 2/11/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• amends the corporate franchise and income tax rates;
• amends the individual income tax rate;
• expands eligibility for the social security benefits tax credit by increasing the threshold for the income-based phaseout; and
• enacts a state earned income tax credit and provides for apportionment of that credit.

Every vote on this bill

Bill text

TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
House Sponsor: 
Casey Snider
Cosponsors:
J. Stuart Adams
Jacob L. Anderegg
Curtis S. Bramble
David G. Buxton
Kirk A. Cullimore
Lincoln Fillmore
Keith Grover
Wayne A. Harper
David P. Hinkins
Don L. Ipson
John D. Johnson
Michael S. Kennedy
Michael K. McKell
Ann Millner
Derrin R. Owens
Scott D. Sandall
Jerry W. Stevenson
Daniel W. Thatcher
Evan J. Vickers
Todd D. Weiler
Chris H. Wilson
Ronald M. Winterton
LONG TITLE
General Description:
This bill modifies income tax provisions.
Highlighted Provisions:
This bill:
▸ amends the corporate franchise and income tax rates;
▸ amends the individual income tax rate;
▸ expands eligibility for the social security benefits tax credit by increasing the
threshold for the income-based phaseout; and
▸ enacts a state earned income tax credit and provides for apportionment of that
credit.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-7-104
, as last amended by Laws of Utah 2020, Chapter 354
59-7-201
, as last amended by Laws of Utah 2018, Chapter 456
59-10-104
, as last amended by Laws of Utah 2018, Chapter 456
59-10-1002.2
, as last amended by Laws of Utah 2021, Chapters 68 and 428
59-10-1042
, as enacted by Laws of Utah 2021, Chapter 428
ENACTS:
59-10-1044
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-7-104
 is amended to read:
59-7-104.
Tax -- Minimum tax.
(1) Each domestic and foreign corporation, except a corporation that is exempt under
Section 
59-7-102
, shall pay an annual tax to the state based on the corporation's Utah taxable
income for the taxable year for the privilege of exercising the corporation's corporate franchise
or for the privilege of doing business in the state.
(2) The tax shall be [
4.95%
] 
4.85%
 of a corporation's Utah taxable income.
(3) The minimum tax a corporation shall pay under this chapter is $100.
Section 2. Section 
59-7-201
 is amended to read:
59-7-201.
Tax -- Minimum tax.
(1) There is imposed upon each corporation, except a corporation that is exempt under
Section 
59-7-102
, a tax upon the corporation's Utah taxable income for the taxable year that is
derived from sources within this state other than income for any period that the corporation is
required to include in the corporation's tax base under Section 
59-7-104
.
(2) The tax imposed by Subsection (1) shall be [
4.95%
] 
4.85%
 of a corporation's Utah
taxable income.
(3) In no case shall the tax be less than $100.
Section 3. Section 
59-10-104
 is amended to read:
59-10-104.
Tax basis -- Tax rate -- Exemption.
(1) A tax is imposed on the state taxable income of a resident individual as provided in
this section.
(2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
product of:
(a) the resident individual's state taxable income for that taxable year; and
(b) [
4.95%
] 
4.85%
.
(3) This section does not apply to a resident individual exempt from taxation under
Section 
59-10-104.1
.
Section 4. Section 
59-10-1002.2
 is amended to read:
59-10-1002.2.
Apportionment of tax credits.
(1) A nonresident individual or a part-year resident individual that claims a tax credit
in accordance with Section 
59-10-1017
, 
59-10-1018
, 
59-10-1019
, 
59-10-1022
, 
59-10-1023
,
59-10-1024
, 
59-10-1028
, 
59-10-1042
, [
or
] 
59-10-1043
, or 
59-10-1044
 may only claim an
apportioned amount of the tax credit equal to:
(a) for a nonresident individual, the product of:
(i) the state income tax percentage for the nonresident individual; and
(ii) the amount of the tax credit that the nonresident individual would have been
allowed to claim but for the apportionment requirements of this section; or
(b) for a part-year resident individual, the product of:
(i) the state income tax percentage for the part-year resident individual; and
(ii) the amount of the tax credit that the part-year resident individual would have been
allowed to claim but for the apportionment requirements of this section.
(2) A nonresident estate or trust that claims a tax credit in accordance with Section
59-10-1017
, 
59-10-1020
, 
59-10-1022
, 
59-10-1024
, or 
59-10-1028
 may only claim an
apportioned amount of the tax credit equal to the product of:
(a) the state income tax percentage for the nonresident estate or trust; and
(b) the amount of the tax credit that the nonresident estate or trust would have been
allowed to claim but for the apportionment requirements of this section.
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) 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) claim a tax credit under this section and a tax credit under Section 
59-10-1019
.
(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
] 
$31,000
;
(b) for a federal individual income tax return that is allowed a single filing status,
[
$30,000
] 
$37,000
;
(c) for a federal individual income tax return that is allowed a head of household filing
status, [
$50,000
] 
$62,000
; or
(d) for a return under this chapter that is allowed a joint filing status, [
$50,000
]
$62,000
.
(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 
59-10-1044
 is enacted to read:
 59-10-1044.
Nonrefundable earned income tax credit.
(1) As used in this section:
(a) "Federal earned income tax credit" means the federal earned income tax credit
described in Section 32, Internal Revenue Code.
(b) "Qualifying claimant" means a resident or nonresident individual who qualifies and
claims the federal earned income tax credit for the current taxable year.
(2) Subject to Section 
59-10-1002.2
, a qualifying claimant may claim a nonrefundable
earned income tax credit equal to 15% of the amount of the federal earned income tax credit
that the qualifying claimant was entitled to claim on a federal income tax return for the current
taxable year.
(3) A qualifying claimant may not carry forward or carry back the amount of the earned
income tax credit that exceeds the qualifying claimant's tax liability.
Section 7. 
Retrospective Operation.
This bill has retrospective operation for a taxable year beginning on or after January 1,
2022.