Title 59, Revenue and Taxation

59-7-106. Subtractions from unadjusted income. (1) In computing adjusted income, the following amounts shall be subtracted from unadjusted income: (a) the foreign dividend gross-up included in gross income for federal income tax purposes under Section 78, Internal Revenue Code; (…

59-7-107. Basis. (1)(a) For property acquired after December 31, 1993, basis shall be determined pursuant to the Internal Revenue Code without reference to Section 1502, Internal Revenue Code, or regulations promulgated under that section. (b) Notwithstanding Subsection (1)(a), a…

59-7-108. Distributions by corporations. (1)(a) For purposes of this chapter, a distribution is made out of earnings or profits to the extent of the earnings or profits, and from the most recently accumulated earnings or profits. (b)(i) Subject to Subsection (1)(b)(ii), any earni…

59-7-109. Charitable contributions. (1) Except as provided in Subsection (2), a subtraction is allowed for charitable contributions made within the taxable year to organizations described in Section 170(c), Internal Revenue Code. (2) The aggregate amount of charitable contributio…

59-7-109.1. Charitable contributions to the Carson Smith Opportunity Scholarship Program. (1) Notwithstanding anything to the contrary in Section 59-7-109, a taxpayer may not subtract a charitable contribution that meets the requirements of Section 59-7-109 to the extent that the…

59-7-110. Utah net loss -- Carry forward -- Deduction. (1) A taxpayer shall determine the amount of Utah net loss that the taxpayer may carry forward to offset income of another taxable year as provided in this section. (2) Subject to the other provisions of this section, a taxpa…

59-7-111. Safe harbor lease provisions. (1)(a) For purchasers or lessors of safe harbor leases, the following additions shall be made to unadjusted income: (i) interest expense; and (ii) depreciation claimed on safe harbor lease property. (b) For purchasers or lessors of safe har…

59-7-112. Installment sales. (1) Except as provided in Subsections (2) and (3), installment sales shall be governed by Sections 453, 453A, and 453B, Internal Revenue Code. (2) Installment sales entered into prior to January 1, 1994, shall be recognized as originally reported. (3)…

59-7-113. Allocation of income and deductions between several corporations controlled by same interests. If two or more corporations (whether or not organized or doing business in this state, and whether or not affiliated) are owned or controlled directly or indirectly by the sam…

59-7-114. Section 338, Internal Revenue Code -- Elections. (1) Transactions for which an election has been made or considered to be made for federal purposes under Section 338, Internal Revenue Code, shall be treated as provided in this section. An election is not available for s…

59-7-115. Section 336(e), Internal Revenue Code -- Elections. (1) Transactions for which an election has been made for federal purposes under Section 336(e), Internal Revenue Code, shall be treated as provided in this section. An election is not available for state purposes unles…

59-7-116. Taxation of regulated investment companies. (1) A regulated investment company or a fund of such a company, as defined in Sections 851(a) or 851(g), Internal Revenue Code, which is organized under the laws of Utah, shall determine Utah taxable income as follows: (a) cal…

59-7-116.5. Real estate investment trusts. (1) A real estate investment trust that is not a captive real estate investment trust shall be taxed on the same income taxed for federal purposes under the Internal Revenue Code. (2) Any income taxable under this section shall be taxed …

59-7-117. Equitable adjustments. The commission shall by rule prescribe for adjustments to Utah taxable income when, solely by reason of the enactment of this chapter, a taxpayer would otherwise receive or have received a double tax benefit or suffer or have suffered a double tax…

59-7-118. Section 965, Internal Revenue Code -- Installment payments. (1) Subject to the other provisions of this section, a corporation may pay in installments the tax owed under this chapter on deferred foreign income described in Section 965, Internal Revenue Code. (2) Subsect…

59-7-159. Review of credits allowed under this chapter. (1) As used in this section, "committee" means the Revenue and Taxation Interim Committee. (2)(a) The committee shall review each tax credit described in this chapter once every five years to determine whether to continue, m…

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 per…

59-7-203. Computation of Utah taxable income. For purposes of the tax imposed by this part, Utah taxable income shall be determined in accordance with Part 1, Corporate Tax Generally, except that wherever the date December 31, 1930 appears, the date December 31, 1958 shall be sub…

59-7-204. Income attributed to sources within the state. For the purposes of the tax imposed by this part, the portion of Utah taxable income derived from or attributable to sources within this state shall be determined in accordance with Part 3, Allocation and Apportionment of I…

59-7-205. Applicability of Parts 5 and 6 of chapter. For purposes of the tax imposed by this part, Part 5, Procedures and Administration and Part 6, Credits, shall apply.

59-7-206. Offsets against tax. There shall be offset against the tax imposed by this part for any period the amount of any tax imposed on the taxpayer under Section 59-7-104 for the same period. In the event that taxes, interest, and penalties have been or shall be assessed again…

59-7-207. Corporations becoming subject to tax -- Assessment under other sections. If a corporation formerly subject to tax under Section 59-7-104 becomes subject to tax under this part, it shall file an information return for the income year in which the change occurs. The tax f…

59-7-208. Provisions followed for purposes of tax collected. For the purposes of the taxes collected under this part, and interest and penalties arising in connection therewith, the provisions of Section 59-7-532 shall be followed.

59-7-302. Definitions -- Determination of taxpayer status. (1) As used in this part, unless the context otherwise requires: (a) "Aircraft type" means a particular model of aircraft as designated by the manufacturer of the aircraft. (b) "Airline" means the same as that term is def…

59-7-303. Apportionable income. (1) Any taxpayer having income from business activity which is taxable both within and without this state shall allocate and apportion the taxpayer's adjusted income as provided in this part. (2) Any taxpayer having income solely from business acti…

59-7-305. When taxable in another state. For purposes of allocation and apportionment of income under this part, a taxpayer is taxable in another state if: (1) in that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for t…

59-7-306. Allocation of certain nonbusiness income. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in Sections…

59-7-307. Allocation of rents and royalties. (1) To the extent that the following constitute nonbusiness income: (a) net rents and royalties from real property located in this state are allocable to this state; and (b) net rents and royalties from tangible personal property are a…

59-7-308. Allocation of capital gains and losses. To the extent that the following constitute nonbusiness income: (1) capital gains and losses from sales of real property located in this state are allocable to this state; (2) capital gains and losses from sales of tangible person…

59-7-309. Allocation of interest and dividends. To the extent they constitute nonbusiness income, interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.

59-7-310. Allocation of patent and copyright royalties. (1) To the extent they constitute nonbusiness income, patent and copyright royalties are allocable to this state: (a) if and to the extent that the patent or copyright is utilized by the payer in this state; or (b) if and to…

59-7-311. Method of apportionment of business income. (1) For a taxable year, a taxpayer shall apportion all business income to this state by multiplying the business income by a fraction calculated as provided in this section. (2) Subject to the other provisions of this part, a …

59-7-312. Property factor for apportionment of business income -- Mobile flight equipment of an airline. (1) Except as provided in Subsections (2) and (3), the property factor is a fraction: (a) the numerator of which is the average value of the taxpayer's real and tangible perso…

59-7-313. Valuation of property for inclusion in property factor. (1) Property owned by the taxpayer is valued at its original cost. (2) Property rented by the taxpayer is valued at eight times the net annual rental rate. (3) Net annual rental rate is the annual rental rate paid …

59-7-314. Averaging property values for inclusion in property factors. (1) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period or averaging of monthly values during the tax period if monthly averaging more clearl…

59-7-315. Payroll factor for apportionment of business income -- Compensation of flight personnel by an airline. (1) Except as provided in Subsections (2) and (3), the payroll factor is a fraction: (a) the numerator of which is the total amount paid in this state during the tax p…

59-7-316. Determination of compensation for inclusion in payroll factor. (1) Compensation is paid in this state if: (a) the individual's service is performed entirely within the state; (b) the individual's service is performed both within and without the state, but the service pe…

59-7-317. Sales factor for apportionment of business income -- Transportation revenue of an airline -- Sales of a financial institution. (1) As used in this section: (a)(i) "Finance lease" means a lease transaction that is the functional equivalent of an extension of credit and t…

59-7-318. Sales of tangible personal property. (1) Sales of tangible personal property are in this state if: (a) the property is delivered or shipped to a purchaser, other than the United States Government, within this state regardless of the f.o.b. point or other conditions of t…

59-7-319. Circumstances under which a receipt, rent, royalty, or sale is considered to be in this state. (1)(a) Subject to Subsection (1)(b), as used in this section, "regulated investment company" is as defined in Section 851(a), Internal Revenue Code, in effect for the taxable …

59-7-320. Equitable adjustment of standard allocation or apportionment. Notwithstanding any other provision of this part, if the allocation and apportionment provisions of this part do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer…

59-7-321. Construction. This part shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.

59-7-401. Determining threshold level of business activity for corporations organized or incorporated outside of the United States. (1) Except as provided in Subsection (2), in determining whether a corporation is a foreign operating company or has met the threshold level of busi…

59-7-402. Water's edge combined report. (1) Except as provided in Section 59-7-403, if any corporation listed in Subsection 59-7-101(40)(a) is doing business in Utah, the unitary group shall file a water's edge combined report. (2)(a) A group of corporations that are not otherwis…

59-7-403. Worldwide combined report. (1) A unitary group may elect to file a worldwide combined report. (2) Corporations electing to file a worldwide combined report may not thereafter elect to file a return on a basis other than a worldwide combined report without the consent of…

59-7-404. Calculation of unadjusted income for combined reporting. (1) A group filing a combined report under Section 59-7-402 or 59-7-403 shall calculate unadjusted income of the combined group by: (a) computing unadjusted income on a separate return basis; (b) combining income …