Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                           H.B. 543
Approved for Filing: A.V. Arthur 6
         6 02-13-24 10:49 AM 6
                               INCOME TAX MODIFICATIONS
                                      2024 GENERAL SESSION
                                           STATE OF UTAH
                                 Chief Sponsor: Brian S. King
                                 Senate Sponsor: ____________
 6
 LONG TITLE
 General Description:
        This bill amends income tax provisions.
 Highlighted Provisions:
        This bill:
        < creates individual income tax brackets with higher rates for higher incomes; and
        < makes conforming changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
        59-10-104, as last amended by Laws of Utah 2023, Chapter 459
        59-10-116, as last amended by Laws of Utah 2022, Chapter 252
        59-10-201, as last amended by Laws of Utah 2010, Chapter 6
        59-10-205, as last amended by Laws of Utah 2008, Chapter 389
24
 Be it enacted by the Legislature of the state of Utah:
                                                                                                 H.B. 543
        Section 1. Section 59-10-104 is amended to read:
        59-10-104. Tax basis -- Tax rate -- Exemption.
     *HB0543*
       H.B. 543                                                                  02-13-24 10:49 AM
         (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)] (a) [4.65%.] 4.65% multiplied by the state taxable income for a resident
 individual with $250,000 or less in state taxable income;
         (b) $11,625 plus 5.65% multiplied by the state taxable income greater than $250,000
 for a resident individual with more than $250,000 but no more than $1,000,000 in state taxable
 income; or
         (c) $54,000 plus 6.65% multiplied by the state taxable income greater than $1,000,000
 for a resident individual with more than $1,000,000 in state taxable income.
         (3) This section does not apply to a resident individual exempt from taxation under
 Section 59-10-104.1.
         Section 2. Section 59-10-116 is amended to read:
         59-10-116. Tax on nonresident individual -- Calculation -- Exemption.
         (1) Except as provided in Subsection (2), a tax is imposed on a nonresident individual
 in an amount equal to [the product of the]:
         [(a) nonresident individual's state taxable income; and]
         [(b) percentage listed in Subsection 59-10-104(2).]
         (a) 4.65% multiplied by the state taxable income for a nonresident individual with
 $250,000 or less in state taxable income;
         (b) $11,625 plus 5.65% multiplied by the state taxable income greater than $250,000
 for a nonresident individual with more than $250,000 but no more than $1,000,000 in state
 taxable income; or
         (c) $54,000 plus 6.65% multiplied by the state taxable income greater than $1,000,000
 for a nonresident individual with more than $1,000,000 in state taxable income.
         (2) This section does not apply to a nonresident individual:
         (a) exempt from taxation under Section 59-10-104.1; or
         (b) whose only state source income is wages that are excluded in accordance with
 Section 59-10-117.5.
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       02-13-24 10:49 AM                                                                          H.B. 543
         Section 3. Section 59-10-201 is amended to read:
         59-10-201. Taxation of resident trusts and estates.
         (1) (a) Except as provided in Subsection (2), a tax [determined in accordance with the
 rate prescribed by Subsection 59-10-104(2)(b)] is imposed for each taxable year on the state
 taxable income of [each] a resident estate or trust.
         (b) The tax is in an amount equal to:
         (i) 4.65% multiplied by the state taxable income for a resident trust or estate with
 $250,000 or less in state taxable income;
         (ii) $11,625 plus 5.65% multiplied by the state taxable income greater than $250,000
 for a resident trust or estate with more than $250,000 but no more than $1,000,000 in state
 taxable income; or
         (iii) $54,000 plus 6.65% multiplied by the state taxable income greater than $1,000,000
 for a resident trust or estate with more than $1,000,000 in state taxable income.
         (2) The following are not subject to a tax imposed by this part:
         (a) a resident estate or trust that is not required to file a federal income tax return for
 estates and trusts for the taxable year; or
         (b) a resident trust taxed as a corporation.
         (3) A resident estate or trust shall be allowed the credit provided in Section
 59-10-1003, relating to an income tax imposed by another state, except that the limitation shall
 be computed by reference to the taxable income of the estate or trust.
         (4) The property of the Utah Educational Savings Plan established in Title 53B,
 Chapter 8a, Utah Educational Savings Plan, and its income from operations and investments
 are exempt from all taxation by the state under this chapter.
         Section 4. Section 59-10-205 is amended to read:
         59-10-205. Tax on nonresident estate or trust.
         (1) Except as provided in Subsection (2), a tax is imposed on a nonresident estate or
 trust in an amount equal to [the product of]:
         [(a) the nonresident estate's or trust's state taxable income as determined under Section
 59-10-204; and]
         [(b) the percentage listed in Subsection 59-10-104(2).]
         (a) 4.65% multiplied by the state taxable income for a nonresident trust or estate with
                                                       -3-
        H.B. 543                                                                   02-13-24 10:49 AM
 $250,000 or less in state taxable income;
         (b) $11,625 plus 5.65% multiplied by the state taxable income greater than $250,000
 for a nonresident trust or estate with more than $250,000 but no more than $1,000,000 in state
 taxable income; or
         (c) $54,000 plus 6.65% multiplied by the state taxable income greater than $1,000,000
 for a nonresident trust or estate with more than $1,000,000 in state taxable income.
         (2) The following are not subject to a tax imposed by this part:
         (a) a nonresident estate or trust that is not required to file a federal income tax return
 for estates and trusts for the taxable year; or
         (b) a nonresident trust taxed as a corporation.
         Section 5. Effective date.
         This bill takes effect for a taxable year beginning on or after January 1, 2025.
                                                        -4-
Statutes affected: 
Introduced: 59-10-104, 59-10-116, 59-10-201, 59-10-205