Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 61 (2025GS)

Sponsor

Rep. Bolinder, Bridger

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• provides penalty provisions that apply if a producer fails to file a Form 1099 for mineral production tax withholding or fails to file the Form 1099 on time;
• amends the percentage of the mineral production tax a producer withholds to align with the income tax rate;
• amends the information a producer is required to provide on a withholding return;
• provides the requirements for a producer to file a form 1099 with the State Tax Commission; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

7
59-1-401
59-6-102
59-6-103
Tax Withholding Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Bridger Bolinder
Senate Sponsor: Daniel McCay
LONG TITLE
Committee Note:
 The Revenue and Taxation Interim Committee recommended this bill.
Legislative Vote:
14 voting for
0 voting against
4 absent
General Description:
This bill modifies requirements for tax withholding.
Highlighted Provisions:
This bill:
 provides penalty provisions that apply if a producer fails to file a Form 1099 for mineral 
production tax withholding or fails to file the Form 1099 on time;
aligns the time periods for incurring penalties for failure to file or timely file an income 
tax withholding form with the time periods for incurring penalties for failure to file or 
timely file a mineral production tax withholding form;
amends the percentage of the mineral production tax a producer withholds to align with 
the income tax rate;
amends the information a producer is required to provide on a withholding return;
provides the requirements for a producer to file a form 1099 with the State Tax 
Commission; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-1-401
, as last amended by Laws of Utah 2024, Chapter 96
59-6-102
, as last amended by Laws of Utah 2008, Chapter 255
59-6-103
, as last amended by Laws of Utah 2017, Chapter 226
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
59-1-401
 is amended to read:
59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- 
Statute of limitations -- Commission authority to waive, reduce, or compromise penalty 
or interest.
(1)
As used in this section:
(a)
"Tax, fee, or charge" means:
(i)
a tax, fee, or charge the commission administers under:
(A)
this title;
(B)
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C)
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D)
Section 
19-6-410.5
;
(E)
Section 
19-6-714
;
(F)
Section 
19-6-805
;
(G)
Section 
34A-2-202
;
(H)
Section 
40-6-14
; or
(I)
Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service 
Charges; or
(ii)
another amount that by statute is subject to a penalty imposed under this section.
(b)
"Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(i)
Title 41, Chapter 1a, Motor Vehicle Act, except for Section 
41-1a-301
;
(ii)
Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(iii)
Chapter 2, Property Tax Act, except for Section 
59-2-1309
;
(iv)
Chapter 3, Tax Equivalent Property Act; or
(v)
Chapter 4, Privilege Tax.
(2)
(a)
The due date for filing a return is:
(i)
if the person filing the return is not allowed by law an extension of time for filing 
the return, the day on which the return is due as provided by law; or
(ii)
if the person filing the return is allowed by law an extension of time for filing the 
return, the earlier of:
(A)
the date the person files the return; or
(B)
the last day of that extension of time as allowed by law.
(b)
A penalty in the amount described in Subsection (2)(c) is imposed if a person files a 
return after the due date described in Subsection (2)(a).
(c)
For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
(i)
$20; or
(ii)
(A)
2% of the unpaid tax, fee, or charge due on the return if the return is filed 
no later than five days after the due date described in Subsection (2)(a);
(B)
5% of the unpaid tax, fee, or charge due on the return if the return is filed 
more than five days after the due date but no later than 15 days after the due 
date described in Subsection (2)(a); or
(C)
10% of the unpaid tax, fee, or charge due on the return if the return is filed 
more than 15 days after the due date described in Subsection (2)(a).
(d)
This Subsection (2) does not apply to:
(i)
an amended return; or
(ii)
a return with no tax due.
(3)
(a)
Except as provided in Subsection (15), a person is subject to a penalty for failure 
to pay a tax, fee, or charge if:
(i)
the person files a return on or before the due date for filing a return described in 
Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or 
before that due date;
(ii)
the person:
(A)
is subject to a penalty under Subsection (2)(b); and
(B)
fails to pay the tax, fee, or charge due on a return within a 90-day period after 
the due date for filing a return described in Subsection (2)(a);
(iii)
(A)
the person is subject to a penalty under Subsection (2)(b); and
(B)
the commission estimates an amount of tax due for that person in accordance 
with Subsection 
59-1-1406
(2);
(iv)
the person:
(A)
is mailed a notice of deficiency; and
(B)
within a 30-day period after the day on which the notice of deficiency 
described in Subsection (3)(a)(iv)(A) is mailed:
(I)
does not file a petition for redetermination or a request for agency action; 
and
(II)
fails to pay the tax, fee, or charge due on a return;
(v)
(A)
the commission:
(I)
issues an order constituting final agency action resulting from a timely filed 
petition for redetermination or a timely filed request for agency action; or
(II)
is considered to have denied a request for reconsideration under Subsection 
63G-4-302
(3)(b) resulting from a timely filed petition for redetermination 
or a timely filed request for agency action; and
(B)
the person fails to pay the tax, fee, or charge due on a return within a 30-day 
period after the date the commission:
(I)
issues the order constituting final agency action described in Subsection 
(3)(a)(v)(A)(I); or
(II)
is considered to have denied the request for reconsideration described in 
Subsection (3)(a)(v)(A)(II); or
(vi)
the person fails to pay the tax, fee, or charge within a 30-day period after the date 
of a final judicial decision resulting from a timely filed petition for judicial review.
(b)
For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
(i)
$20; or
(ii)
(A)
2% of the unpaid tax, fee, or charge due on the return if the activated tax, 
fee, or charge due on the return is paid no later than five days after the due date 
for filing a return described in Subsection (2)(a);
(B)
5% of the unpaid tax, fee, or charge due on the return if the activated tax, fee, 
or charge due on the return is paid more than five days after the due date for 
filing a return described in Subsection (2)(a) but no later than 15 days after that 
due date; or
(C)
10% of the unpaid tax, fee, or charge due on the return if the activated tax, fee, 
or charge due on the return is paid more than 15 days after the due date for 
filing a return described in Subsection (2)(a).
(4)
(a)
In the case of any underpayment of estimated tax or quarterly installments 
required by Sections 
59-5-107
, 
59-5-207
, 
59-7-504
, and 
59-9-104
, there shall be 
added a penalty in an amount determined by applying the interest rate provided under 
Section 
59-1-402
 plus four percentage points to the amount of the underpayment for 
the period of the underpayment.
(b)
(i)
For purposes of Subsection (4)(a), the amount of the underpayment shall be the 
excess of the required installment over the amount, if any, of the installment paid 
on or before the due date for the installment.
(ii)
The period of the underpayment shall run from the due date for the installment to 
whichever of the following dates is the earlier:
(A)
the original due date of the tax return, without extensions, for the taxable year; 
or
(B)
with respect to any portion of the underpayment, the date on which that 
portion is paid.
(iii)
For purposes of this Subsection (4), a payment of estimated tax shall be credited 
against unpaid required installments in the order in which the installments are 
required to be paid.
(5)
(a)
Notwithstanding Subsection (2) and except as provided in Subsection (6), a 
person allowed by law an extension of time for filing a corporate franchise or income 
tax return under Chapter 7, Corporate Franchise and Income Taxes, or an individual 
income tax return under Chapter 10, Individual Income Tax Act, is subject to a 
penalty in the amount described in Subsection (5)(b) if, on or before the day on 
which the return is due as provided by law, not including the extension of time, the 
person fails to pay:
(i)
for a person filing a corporate franchise or income tax return under Chapter 7, 
Corporate Franchise and Income Taxes, the payment required by Subsection 
59-7-507
(1)(b); or
(ii)
for a person filing an individual income tax return under Chapter 10, Individual 
Income Tax Act, the payment required by Subsection 
59-10-516
(2).
(b)
For purposes of Subsection (5)(a), the penalty per month during the period of the 
extension of time for filing the return is an amount equal to 2% of the tax due on the 
return, unpaid as of the day on which the return is due as provided by law.
(6)
If a person does not file a return within an extension of time allowed by Section 
59-7-505
 or 
59-10-516
, the person:
(a)
is not subject to a penalty in the amount described in Subsection (5)(b); and
(b)
is subject to a penalty in an amount equal to the sum of:
(i)
a late file penalty in an amount equal to the greater of:
(A)
$20; or
(B)
10% of the tax due on the return, unpaid as of the day on which the return is 
due as provided by law, not including the extension of time; and
(ii)
a late pay penalty in an amount equal to the greater of:
(A)
$20; or
(B)
10% of the unpaid tax due on the return, unpaid as of the day on which the 
return is due as provided by law, not including the extension of time.
(7)
(a)
Additional penalties for an underpayment of a tax, fee, or charge are as provided 
in this Subsection (7)(a).
(i)
Except as provided in Subsection (7)(c), if any portion of an underpayment of a 
tax, fee, or charge is due to negligence, the penalty is 10% of the portion of the 
underpayment that is due to negligence.
(ii)
Except as provided in Subsection (7)(d), if any portion of an underpayment of a 
tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% 
of the entire underpayment.
(iii)
If any portion of an underpayment is due to an intent to evade a tax, fee, or 
charge, the penalty is the greater of $500 per period or 50% of the entire 
underpayment.
(iv)
If any portion of an underpayment is due to fraud with intent to evade a tax, fee, 
or charge, the penalty is the greater of $500 per period or 100% of the entire 
underpayment.
(b)
If the commission determines that a person is liable for a penalty imposed under 
Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the 
proposed penalty.
(i)
The notice of proposed penalty shall:
(A)
set forth the basis of the assessment; and
(B)
be mailed by certified mail, postage prepaid, to the person's last-known 
address.
(ii)
Upon receipt of the notice of proposed penalty, the person against whom the 
penalty is proposed may:
(A)
pay the amount of the proposed penalty at the place and time stated in the 
notice; or
(B)
proceed in accordance with the review procedures of Subsection (7)(b)(iii).
(iii)
A person against whom a penalty is proposed in accordance with this Subsection 
(7) may contest the proposed penalty by filing a petition for an adjudicative 
proceeding with the commission.
(iv)
(A)
If the commission determines that a person is liable for a penalty under 
this Subsection (7), the commission shall assess the penalty and give notice and 
demand for payment.
(B)
The commission shall mail the notice and demand for payment described in 
Subsection (7)(b)(iv)(A):
(I)
to the person's last-known address; and
(II)
in accordance with Section 
59-1-1404
.
(c)
A seller that voluntarily collects a tax under Subsection 
59-12-107
(2)(d) is not 
subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
(i)
a court of competent jurisdiction issues a final unappealable judgment or order 
determining that:
(A)
the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a) or is a seller required to pay or collect and remit sales and use taxes 
under Subsection 
59-12-107
(2)(b) or (2)(c); and
(B)
the commission or a county, city, or town may require the seller to collect a 
tax under Subsections 
59-12-103
(2)(a) through (e); or
(ii)
the commission issues a final unappealable administrative order determining that:
(A)
the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a) or is a seller required to pay or collect and remit sales and use taxes 
under Subsection 
59-12-107
(2)(b) or (2)(c); and
(B)
the commission or a county, city, or town may require the seller to collect a 
tax under Subsections 
59-12-103
(2)(a) through (e).
(d)
A seller that voluntarily collects a tax under Subsection 
59-12-107
(2)(d) is not 
subject to the penalty under Subsection (7)(a)(ii) if:
(i)
(A)
a court of competent jurisdiction issues a final unappealable judgment or 
order determining that:
(I)
the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a) or is a seller required to pay or collect and remit sales and 
use taxes under Subsection 
59-12-107
(2)(b) or (2)(c); and
(II)
the commission or a county, city, or town may require the seller to collect a 
tax under Subsections 
59-12-103
(2)(a) through (e); or
(B)
the commission issues a final unappealable administrative order determining 
that:
(I)
the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a) or is a seller required to pay or collect and remit sales and 
use taxes under Subsection 
59-12-107
(2)(b) or (2)(c); and
(II)
the commission or a county, city, or town may require the seller to collect a 
tax under Subsections 
59-12-103
(2)(a) through (e); and
(ii)
the seller's intentional disregard of law or rule is warranted by existing law or by 
a nonfrivolous argument for the extension, modification, or reversal of existing 
law or the establishment of new law.
(8)
(a)
Subject to Subsections (8)(b) and (c), the penalty for failure to file an information 
return, information report, or a complete supporting schedule is $50 for each 
information return, information report, or supporting schedule up to a maximum of 
$1,000.
(b)
If an employer is subject to a penalty under Subsection (13), the employer may not 
be subject to a penalty under Subsection (8)(a).
(c)
If an employer is subject to a penalty under this Subsection (8) for failure to file a 
return in accordance with Subsection 
59-10-406
(3) on or before the due date 
described in Subsection 
59-10-406
(3)(b)(ii), the commission may not impose a 
penalty under this Subsection (8) unless the return is filed more than 14 days after the 
due date described in Subsection 
59-10-406
(3)(b)(ii).
(9)
If a person, in furtherance of a frivolous position, has a prima facie intent to delay or 
impede administration of a law relating to a tax, fee, or charge and files a purported 
return that fails to contain information from which the correctness of reported tax, fee, or 
charge liability can be determined or that clearly indicates that the tax, fee, or charge 
liability shown is substantially incorrect, the penalty is $500.
(10)
(a)
A seller that fails to remit a tax, fee, or charge monthly as required by 
Subsection 
59-12-108
(1)(a):
(i)
is subject to a penalty described in Subsection (2); and
(ii)
may not retain the percentage of sales and use taxes that would otherwise be 
allowable under Subsection 
59-12-108
(2).
(b)
A seller that fails to remit a tax, fee, or charge by electronic funds transfer as 
required by Subsection 
59-12-108
(1)(a)(ii)(B):
(i)
is subject to a penalty described in Subsection (2); and
(ii)
may not retain the percentage of sales and use taxes that would otherwise be 
allowable under Subsection 
59-12-108
(2).
(11)
(a)
A person is subject to the penalty provided in Subsection (11)(c) if that person:
(i)
commits an act described in Subsection (11)(b) with respect to one or more of the 
following documents:
(A)
a return;
(B)
an affidavit;
(C)
a claim; or
(D)
a document similar to Subsections (11)(a)(i)(A) through (C);
(ii)
knows or has reason to believe that the document described in Subsection 
(11)(a)(i) will be used in connection with any material matter administered by the 
commission; and
(iii)
knows that the document described in Subsection (11)(a)(i), if used in connection 
with any material matter administered by the commission, would result in an 
understatement of another person's liability for a tax, fee, or charge.
(b)
The following acts apply to Subsection (11)(a)(i):
(i)
preparing any portion of a document described in Subsection (11)(a)(i);
(ii)
presenting any portion of a document described in Subsection (11)(a)(i);
(iii)
procuring any portion of a document described in Subsection (11)(a)(i);
(iv)
advising in the preparation or presentation of any portion of a document 
described in Subsection (11)(a)(i);
(v)
aiding in the preparation or presentation of any portion of a document described 
in Subsection (11)(a)(i);
(vi)
assisting in the preparation or presentation of any portion of a document 
described in Subsection (11)(a)(i); or
(vii)
counseling in the preparation or presentation of any portion of a document 
described in Subsection (11)(a)(i).
(c)
For purposes of Subsection (11)(a), the penalty:
(i)
shall be imposed by the commission;
(ii)
is $500 for each document described in Subsection (11)(a)(i) with respect to 
which the person described in Subsection (11)(a) meets the requirements of 
Subsection (11)(a); and
(iii)
is in addition to any other penalty provided by law.
(d)
The commission may seek a court order to enjoin a person from engaging in conduct 
that is subject to a penalty under this Subsection (11).
(e)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
commission may make rules prescribing the documents that are similar to 
Subsections (11)(a)(i)(A) through (C).
(12)
(a)
Criminal offenses and penalties are provided in Subsections (12)(b) through (e).
(b)
(i)
A person who is required by this title or any laws the commission administers 
or regulates to register with or obtain a license or permit from the commission, 
who operates without having registered or secured a license or permit, or who 
operates when the registration, license, or permit is expired or not current, is guilty 
of a class B misdemeanor.
(ii)
Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(b)(i), the 
penalty may not:
(A)
be less than $500; or
(B)
exceed $1,000.
(c)
(i)
With respect to a tax, fee, or charge, a person who knowingly and 
intentionally, and without a reasonable good faith basis, fails to make, render, 
sign, or verify a return within the time required by law or to supply information 
within the time required by law, or who makes, renders, signs, or verifies a false 
or fraudulent return or statement, or who supplies false or fraudulent information, 
is guilty of a third degree felony.
(ii)
Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(c)(i), the 
penalty may not:
(A)
be less than $1,000; or
(B)
exceed $5,000.
(d)
(i)
A person who intentionally or willfully attempts to evade or defeat a tax, fee, 
or charge or the payment of a tax, fee, or charge is, in addition to other penalties 
provided by law, guilty of a second degree felony.
(ii)
Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(d)(i), the 
penalty may not:
(A)
be less than $1,500; or
(B)
exceed $25,000.
(e)
(i)
A person is guilty of a second degree felony if that person commits an act:
(A)
described in Subsection (12)(e)(ii) with respect to one or more of the 
following documents:
(I)
a return;
(II)
an affidavit;
(III)
a claim; or
(IV)
a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
(B)
subject to Subsection (12)(e)(iii), with knowledge that the document described 
in Subsection (12)(e)(i)(A):
(I)
is false or fraudulent as to any material matter; and
(II)
could be used in connection with any material matter administered by the 
commission.
(ii)
The following acts apply to Subsection (12)(e)(i):
(A)
preparing any portion of a document described in Subsection (12)(e)(i)(A);
(B)
presenting any portion of a document described in Subsection (12)(e)(i)(A);
(C)
procuring any portion of a document described in Subsection (12)(e)(i)(A);
(D)
advising in the preparation or presentation of any portion of a document 
described in Subsection (12)(e)(i)(A);
(E)
aiding in the preparation or presentation of any portion of a document 
described in Subsection (12)(e)(i)(A);
(F)
assisting in the preparation or presentation of any portion of a document 
described in Subsection (12)(e)(i)(A); or
(G)
counseling in the preparation or presentation of any portion of a document 
described in Subsection (12)(e)(i)(A).
(iii)
This Subsection (12)(e) applies:
(A)
regardless of whether the person for which the document described in 
Subsection (12)(e)(i)(A) is prepared or presented:
(I)
knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
(II)
consented to the falsity of the document described in Subsection 
(12)(e)(i)(A); and
(B)
in addition to any other penalty provided by law.
(iv)
Notwithstanding Section 
76-3-301
, for purposes of this Subsection (12)(e), the 
penalty may not:
(A)
be less than $1,500; or
(B)
exceed $25,000.
(v)
The commission may seek a court order to enjoin a person from engaging in 
conduct that is subject to a penalty under this Subsection (12)(e).
(vi)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, 
the commission may make rules prescribing the documents that are similar to 
Subsections (12)(e)(i)(A)(I) through (III).
(f)
The statute of limitations for prosecution for a violation of this Subsection (12) is the 
later of six years:
(i)
from the date the tax should have been remitted; or
(ii)
after the day on which the person commits the criminal offense.
(13)
(a)
Subject to Subsection (13)(b), an employer that is required to file a form with 
the commission in accordance with Subsection 
59-10-406
(8) or (9) is subject to a 
penalty described in Subsection (13)(b) if the employer:
(i)
fails to file the form with the commission in an electronic format approved by the 
commission as required by Subsection 
59-10-406
(8) or (9);
(ii)
fails to file the form on or before the due date provided in Subsection 
59-10-406
(8) or (9);
(iii)
fails to provide accurate information on the form; or
(iv)
fails to provide all of the information required by the Internal Revenue Service to 
be contained on the form.
(b)
For purposes of Subsection (13)(a), the penalty is:
(i)
$30 per form, not to exceed $75,000 in a calendar year, if the employer files the 
form in accordance with Subsection 
59-10-406
(8) or (9), more than 14 days after 
the due date provided in Subsection 
59-10-406
(8) or (9) but no later than 30 days 
after the due date provided in Subsection 
59-10-406
(8) or (9);
(ii)
$60 per form, not to exceed $200,000 in a calendar year, if the employer files the 
form in accordance with Subsection 
59-10-406
(8) or (9), more than 30 days after 
the due date provided in Subsection 
59-10-406
(8) or (9) but on or before June 1; or
(iii)
$100 per form, not to exceed $500,000 in a calendar year, if the employer:
(A)
files the form in accordance with Subsection 
59-10-406
(8) or (9) after June 1; 
or
(B)
fails to file the form.
(c)
A producer that is required to file a form with the commission in accordance with 
Subsection 
59-6-103(3)
 is subject to a penalty described in Subsection (13)(d) if the 
producer:
(i)
fails to file the form with the commission in the format approved by the 
commission as required by Subsection 
59-6-103(3)
;
(ii)
fails to file the form on or before the due date provided in Subsection 
59-6-103(3)
;
(iii)
fails to provide accurate information on the form; or
(iv)
fails to provide all of the information required by the Internal Revenue Service to 
be contained on the form.
(d)
For purposes of Subsection (13)(c), the penalty is:
(i)
$30 per form, not to exceed $75,000 in a calendar year, if the producer files the 
form in accordance with Subsection 
59-6-103(3)
, more than 14 days, but no later 
than 60 days, after the due date provided in Subsection 
59-6-103(3)
;
(ii)
$60 per form, not to exceed $200,000 in a calendar year, if the producer files the 
form in accordance with Subsection 
59-6-103(3)
, more than 60 days after the due 
date provided in Subsection 
59-6-103(3)
 but on or before June 1; or
(iii)
$100 per form, not to exceed $500,000 in a calendar year, if the producer:
(A)
files the form in accordance with Subsection 
59-6-103(3)
 after June 1; or
(B)
fails to file the form.
(14)
Upon making a record of the commission's actions, and upon reasonable cause shown, 
the commission may waive, reduce, or compromise any of the penalties or interest 
imposed under this part.
(15)
Failure to pay a tax described in Subsection 
59-10-1403.2
(2) shall be subject to a 
penalty as described in Subsection (3) except that the penalty shall be:
(a)
assessed only if the pass-through entity reports tax paid on a Utah Schedule K-1 but 
does not pay some or all of the tax reported; and
(b)
calculated based on the difference between the amount of tax reported and the 
amount of tax paid.
Section 2, Section 
59-6-102
 is amended to read:
59-6-102. Producer's obligation to deduct and withhold payments -- Amount -- 
Exempt payments -- Credit against tax.
(1)
Except as provided in Subsection (2), each producer shall deduct and withhold from 
each payment being made to any person in respect to production of minerals in this state, 
but not including that to which the producer is entitled, an amount equal to 
5% of
the 
product of:
(a)
the amount 
which
that
 would have otherwise been payable to the person entitled to 
the payment
; and
(b)
the percentage listed in Subsection 
59-10-104
(2)(b)
.
(2)
The obligation to deduct and withhold from payments as provided in Subsection (1)
 does not apply to those payments 
which
that
 are payable to:
(a)
the United States, this state, or an agency or political subdivision of the United States 
or this state;
(b)
an organization that is exempt from the taxes imposed by Chapter 7, Corporate 
Franchise and Income Taxes, in accordance with Subsection 
59-7-102
(1)(a);
(c)
an Indian or Indian tribe if the amounts accruing are subject to the supervision of the 
United States or an agency of the United States; or
(d)
a business entity that files an exemption certificate in accordance with Section 
59-6-102.1
.
(3)
A claimant, estate, or trust that files a tax return with the commission may claim a 
refundable tax credit against the tax reflected on the tax return for the amount withheld 
by the producer under Subsection (1).
Section 3, Section 
59-6-103
 is amended to read:
59-6-103. Returns and payments required of producers.
(1)
(a)
Subject to Subsection (1)(b), a producer required to deduct and withhold an 
amount under this chapter shall file a withholding return with the commission:
(i)
for the amounts required to be deducted and withheld under this chapter during the 
preceding calendar quarter; 
and
(ii)
in an electronic format 
 prescribed
approved
 by the commission
.
; and
(iii)
that contains any information the commission requires.
(b)
A withholding return described in Subsection (1)(a) is due on or before the last day 
of April, July, October, and January.
(c)
(i)
Each producer shall file an annual return containing the information that the 
commission requires.
(ii)
The producer shall file the annual return:
(A)
in an electronic format the commission approves; and
(B)
on or before January 31 of the year following that for which the return is made.
(c)
A withholding return described in Subsection (1)(a) shall contain:
(i)
the name and address of each person receiving a payment subject to the deduction 
and withholding requirements of this chapter for the calendar quarter for which the 
withholding return is filed;
(ii)
for each person described in Subsection (1)(c)(i), the amount of payment the 
person would have received from the production of minerals by the producer had the 
deduction and withholding required by this chapter not been made for the calendar 
quarter for which the withholding return is filed;
(iii)
for each person described in Subsection (1)(c)(i), the amount of deduction and 
withholding under this chapter for the calendar quarter for which the withholding 
return is filed;
(iv)
the name or description of the property from which the production of minerals 
occurs that results in a payment subject to deduction and withholding under this 
chapter; and
(v)
for each person described in Subsection (1)(c)(i), the interest of the person in the 
production of minerals that results in a payment subject to deduction and withholding 
under this chapter.
(2)
(a)
If a producer receives an exemption certificate filed in accordance with Section 
59-6-102.1
 from a business entity, the producer shall file a withholding return with 
the commission:
(i)
on a form prescribed by the commission
in a format the commission approves
; 
and
(ii)
on or before the January 31 following the last day of the taxable year for which 
the producer receives the exemption certificate from the business entity.
(b)
The withholding return required by Subsection (2)(a) shall contain:
(i)
the name and address of the business entity that files the exemption certificate in 
accordance with Section 
59-6-102.1
;
(ii)
the amount of the payment made by the producer to the business entity that would 
have been subject to deduction and withholding under this chapter had the 
business entity not filed the exemption certificate in accordance with Section 
59-6-102.1
;
(iii)
the name or description of the property from which the production of minerals 
occurs that would have resulted in a payment subject to deduction and 
withholding under this chapter had the business entity not filed the exemption 
certificate in accordance with Section 
59-6-102.1
; and
(iv)
the interest of the business entity in the production of minerals that would have 
resulted in a payment subject to deduction and withholding under this chapter had 
the business entity not filed the exemption certificate in accordance with Section 
59-6-102.1
.
(3)
(a)
Subject to Subsections (3)(b) and (c), the commission shall require a producer 
that issues the following forms for a taxable year to file the forms with the 
commission in an electronic format approved by the commission:
(i)
a federal Form 1099 filed for purposes of withholding under Section 
59-6-103
; or
(ii)
a federal form substantially similar to a form described in Subsection (3)(a)(i) if 
designated by the commission in accordance with Subsection (3)(d).
(b)
A producer that is required to file a form with the commission in accordance with 
Subsection (3)(a) shall file the form on or before January 31.
(c)
A producer that is required to file a form with the commission in accordance with 
Subsection (3)(a) shall provide:
(i)
accurate information on the form; and
(ii)
all of the information required by the Internal Revenue Service to be contained on 
the form.
(d)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for 
purposes of Subsection (3)(a), the commission may designate a federal form as being 
substantially similar to a form described in Subsection (3)(a)(i) if:
(i)
for purposes of federal individual income taxes, a different federal form contains 
substantially similar information to a form described in Subsection (3)(a)(i); or
(ii)
the Internal Revenue Service replaces a form described in Subsection (3)(a)(i)
 with a different federal form.
Section 4. 
Effective date.
(1) Except as provided in Subsection 
(2)
, this bill takes effect on January 1, 2026.
(2) The actions affecting Section 
59-6-102
 take effect for a taxable year beginning on or 
after January 1, 2026.
12-20-24 4:35 PM