Bill Summary – FastDemocracy

Enrolled Copy                                                                       H.B. 56
                            TAX ASSESSMENT AMENDMENTS
                                     2023 GENERAL SESSION
                                          STATE OF UTAH
                                 Chief Sponsor: Steve Eliason
                               Senate Sponsor: Lincoln Fillmore
 6
 LONG TITLE
 General Description:
        This bill modifies provisions relating to tax assessments.
 Highlighted Provisions:
        This bill:
        < defines terms;
        < requires a county assessor to provide certain assessment data to the commission;
        < establishes a date by which the county assessor must provide the assessment data to
 the commission;
        < permits the commission to review the county's assessment data and to provide
 findings and make recommendations to the county;
        < permits the commission to subscribe to a market data service; and
        < establishes requirements for a pass-through entity when filing an amended return.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides retrospective operation.
 Utah Code Sections Affected:
 AMENDS:
        59-10-114, as last amended by Laws of Utah 2022, Chapter 238
        59-10-406, as last amended by Laws of Utah 2022, Chapter 238
        59-10-1045, as enacted by Laws of Utah 2022, Chapter 238
        59-10-1402, as last amended by Laws of Utah 2022, Chapter 238
       H.B. 56                                                                        Enrolled Copy
        59-10-1403, as last amended by Laws of Utah 2022, Chapter 238
        59-10-1403.2, as last amended by Laws of Utah 2022, Chapter 238
 ENACTS:
        59-2-313.1, Utah Code Annotated 1953
34
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 59-2-313.1 is enacted to read:
        59-2-313.1. County assessor duties to provide assessment data -- Commission
 review -- Subscription to market data service.
        (1) As used in this section, "assessment data" means:
        (a) the information described in Subsection 59-2-303.1(6) contained in a county's
 database used in mass appraisal; and
        (b) any other assessment information the commission requires.
        (2) A county assessor shall provide assessment data to the commission:
        (a) (i) annually on or before March 31;
        (ii) no later than 15 days after the date the county assessor provides the assessment
 book to the county auditor under Section 59-2-311;
        (iii) no later than 15 days after the date the county auditor provides the assessment roll
 to the county treasurer under Section 59-2-326; or
        (b) at any other time requested by the commission.
        (3) The commission may:
        (a) review a county's annual update of property values the county is required to perform
 under Section 59-2-303.1;
        (b) review a county's detailed review of property characteristics the county is required
 to perform under Section 59-2-303.1; and
        (c) provide findings and recommendations to the county.
        (4) The commission may subscribe to a market data service to assist:
        (a) the commission in performing a review described in Subsection (3); and
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       Enrolled Copy                                                                             H.B. 56
         (b) counties in meeting the requirements of Section 59-2-303.1.
         Section 2. Section 59-10-114 is amended to read:
         59-10-114. Additions to and subtractions from adjusted gross income of an
 individual.
         (1) There shall be added to adjusted gross income of a resident or nonresident
 individual:
         (a) a lump sum distribution that the taxpayer does not include in adjusted gross income
 on the taxpayer's federal individual income tax return for the taxable year;
         (b) the amount of a child's income calculated under Subsection (4) that:
         (i) a parent elects to report on the parent's federal individual income tax return for the
 taxable year; and
         (ii) the parent does not include in adjusted gross income on the parent's federal
 individual income tax return for the taxable year;
         (c) (i) a withdrawal from a medical care savings account and any penalty imposed for
 the taxable year if:
         (A) the resident or nonresident individual does not deduct the amounts on the resident
 or nonresident individual's federal individual income tax return under Section 220, Internal
 Revenue Code;
         (B) the withdrawal is subject to Subsections 31A-32a-105(1) and (2); and
         (C) the withdrawal is subtracted on, or used as the basis for claiming a tax credit on, a
 return the resident or nonresident individual files under this chapter;
         (ii) a disbursement required to be added to adjusted gross income in accordance with
 Subsection 31A-32a-105(3); or
         (iii) an amount required to be added to adjusted gross income in accordance with
 Subsection 31A-32a-105(5)(c);
         (d) the amount withdrawn under Title 53B, Chapter 8a, Utah Educational Savings Plan,
 from the account of a resident or nonresident individual who is an account owner as defined in
 Section 53B-8a-102, for the taxable year for which the amount is withdrawn, if that amount
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        H.B. 56                                                                           Enrolled Copy
 withdrawn from the account of the resident or nonresident individual who is the account
 owner:
          (i) is not expended for:
          (A) higher education costs as defined in Section 53B-8a-102.5; or
          (B) a payment or distribution that qualifies as an exception to the additional tax for
 distributions not used for educational expenses provided in Sections 529(c) and 530(d),
 Internal Revenue Code; and
          (ii) is:
          (A) subtracted by the resident or nonresident individual:
          (I) who is the account owner; and
          (II) on the resident or nonresident individual's return filed under this chapter for a
 taxable year beginning on or before December 31, 2007; or
          (B) used as the basis for the resident or nonresident individual who is the account
 owner to claim a tax credit under Section 59-10-1017;
          (e) except as provided in Subsection (5), for bonds, notes, and other evidences of
 indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other
 evidences of indebtedness:
          (i) issued by one or more of the following entities:
          (A) a state other than this state;
          (B) the District of Columbia;
          (C) a political subdivision of a state other than this state; or
          (D) an agency or instrumentality of an entity described in Subsections (1)(e)(i)(A)
 through (C); and
          (ii) to the extent the interest is not included in adjusted gross income on the taxpayer's
 federal income tax return for the taxable year;
          (f) subject to Subsection (2)(c), any distribution received by a resident beneficiary of a
 resident trust of income that was taxed at the trust level for federal tax purposes, but was
 subtracted from state taxable income of the trust pursuant to Subsection 59-10-202(2)(b);
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        Enrolled Copy                                                                              H.B. 56
         (g) any distribution received by a resident beneficiary of a nonresident trust of
 undistributed distributable net income realized by the trust on or after January 1, 2004, if that
 undistributed distributable net income was taxed at the trust level for federal tax purposes, but
 was not taxed at the trust level by any state, with undistributed distributable net income
 considered to be distributed from the most recently accumulated undistributed distributable net
 income;
         (h) any adoption expense:
         (i) for which a resident or nonresident individual receives reimbursement from another
 person; and
         (ii) to the extent to which the resident or nonresident individual subtracts that adoption
 expense:
         (A) on a return filed under this chapter for a taxable year beginning on or before
 December 31, 2007; or
         (B) from federal taxable income on a federal individual income tax return;
         (i) the amount of tax paid on income attributed to the individual in accordance with
 Subsection 59-10-1403.2(2) that is not included in adjusted gross income; and
         (j) the amount of tax paid:
         (i) on income attributed to the individual and taxable in this state, that is not included
 in adjusted gross income;
         (ii) to another state; and
         (iii) that the commission determines is substantially similar to the tax imposed under
 Subsection 59-10-1403.2(2).
         (2) There shall be subtracted from adjusted gross income of a resident or nonresident
 individual:
         (a) the difference between:
         (i) the interest or a dividend on an obligation or security of the United States or an
 authority, commission, instrumentality, or possession of the United States, to the extent that
 interest or dividend is:
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        H.B. 56                                                                         Enrolled Copy
         (A) included in adjusted gross income for federal income tax purposes for the taxable
 year; and
         (B) exempt from state income taxes under the laws of the United States; and
         (ii) any interest on indebtedness incurred or continued to purchase or carry the
 obligation or security described in Subsection (2)(a)(i);
         (b) if the conditions of Subsection (3)(a) are met, the amount of income derived by a
 Ute tribal member:
         (i) during a time period that the Ute tribal member resides on homesteaded land
 diminished from the Uintah and Ouray Reservation; and
         (ii) from a source within the Uintah and Ouray Reservation;
         (c) an amount received by a resident or nonresident individual or distribution received
 by a resident or nonresident beneficiary of a resident trust:
         (i) if that amount or distribution constitutes a refund of taxes imposed by:
         (A) a state; or
         (B) the District of Columbia; and
         (ii) to the extent that amount or distribution is included in adjusted gross income for
 that taxable year on the federal individual income tax return of the resident or nonresident
 individual or resident or nonresident beneficiary of a resident trust;
         (d) the amount of a railroad retirement benefit:
         (i) paid:
         (A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et
 seq.;
         (B) to a resident or nonresident individual; and
         (C) for the taxable year; and
         (ii) to the extent that railroad retirement benefit is included in adjusted gross income on
 that resident or nonresident individual's federal individual income tax return for that taxable
 year;
         (e) an amount:
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        Enrolled Copy                                                                            H.B. 56
        (i) received by an enrolled member of an American Indian tribe; and
        (ii) to the extent that the state is not authorized or permitted to impose a tax under this
 part on that amount in accordance with:
        (A) federal law;
        (B) a treaty; or
        (C) a final decision issued by a court of competent jurisdiction;
        (f) an amount received:
        (i) for the interest on a bond, note, or other obligation issued by an entity for which
 state statute provides an exemption of interest on its bonds from state individual income tax;
        (ii) by a resident or nonresident individual;
        (iii) for the taxable year; and
        (iv) to the extent the amount is included in adjusted gross income on the taxpayer's
 federal income tax return for the taxable year;
        (g) the amount of all income, including income apportioned to another state, of a
 nonmilitary spouse of an active duty military member if:
        (i) both the nonmilitary spouse and the active duty military member are nonresident
 individuals;
        (ii) the active duty military member is stationed in Utah;
        (iii) the nonmilitary spouse is subject to the residency provisions of 50 U.S.C. Sec.
 4001(a)(2); and
        (iv) the income is included in adjusted gross income for federal income tax purposes
 for the taxable year;
        (h) for a taxable year beginning on or after January 1, 2019, but beginning on or before
 December 31, 2019, only:
        (i) the amount of any FDIC premium paid or incurred by the taxpayer that is
 disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
 Revenue Code, on the taxpayer's 2018 federal income tax return; plus
        (ii) the amount of any FDIC premium paid or incurred by the taxpayer that is
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        H.B. 56                                                                        Enrolled Copy
 disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
 Revenue Code, for the taxable year;
        (i) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
 premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income
 tax purposes under Section 162(r), Internal Revenue Code, for the taxable year; and
        (j) an amount of a distribution from a qualified retirement plan under Section 401(a),
 Internal Revenue Code, if:
        (i) the amount of the distribution is included in adjusted gross income on the resident
 or nonresident individual's federal individual income tax return for the taxable year; and
        (ii) for the taxable year when the amount of the distribution was contributed to the
 qualified retirement plan, the amount of the distribution:
        (A) was not included in adjusted gross income on the resident or nonresident
 individual's federal individual income tax return for the taxable year; and
        (B) was taxed by another state of the United States, the District of Columbia, or a
 possession of the United States.
        (3) (a) A subtraction for an amount described in Subsection (2)(b) is allowed only if:
        (i) the taxpayer is a Ute tribal member; and
        (ii) the governor and the Ute tribe execute and maintain an agreement meeting the
 requirements of this Subsection (3).
        (b) The agreement described in Subsection (3)(a):
        (i) may not:
        (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
        (B) provide a subtraction under this section greater than or different from the
 subtraction described in Subsection (2)(b); or
        (C) affect the power of the state to establish rates of taxation; and
        (ii) shall:
        (A) provide for the implementation of the subtraction described in Subsection (2)(b);
        (B) be in writing;
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        Enrolled Copy                                                                             H.B. 56
         (C) be signed by:
         (I) the governor; and
         (II) the chair of the Business Committee of the Ute tribe;
         (D) be conditioned on obtaining any approval required by federal law; and
         (E) state the effective date of the agreement.
         (c) (i) The governor shall report to the commission by no later than February 1 of each
 year regarding whether or not an agreement meeting the requirements of this Subsection (3) is
 in effect.
         (ii) If an agreement meeting the requirements of this Subsection (3) is terminated, the
 subtraction permitted under Subsection (2)(b) is not allowed for taxable years beginning on or
 after the January 1 following the termination of the agreement.
         (d) For purposes of Subsection (2)(b) and in accordance with Title 63G, Chapter 3,
 Utah Administrative Rulemaking Act, the commission may make rules:
         (i) for determining whether income is derived from a source within the Uintah and
 Ouray Reservation; and
         (ii) that are substantially similar to how adjusted gross income derived from Utah
 sources is determined under Section 59-10-117.
         (4) (a) For purposes of this Subsection (4), "Form 8814" means:
         (i) the federal individual income tax Form 8814, Parents' Election To Report Child's
 Interest and Dividends; or
         (ii) (A) a form designated by the commission in accordance with Subsection
 (4)(a)(ii)(B) as being substantially similar to 2000 Form 8814 if for purposes of federal
 individual income taxes the information contained on 2000 Form 8814 is reported on a form
 other than Form 8814; and
         (B) for purposes of Subsection (4)(a)(ii)(A) and in