HB 587

 02-26 08:22  2nd Sub. (Gray) H.B. 587
                           Steve Eliason proposes the following substitute bill:
1Income Tax Amendments
                                        2026 GENERAL SESSION
                                             STATE OF UTAH
                                      Chief Sponsor: Steve Eliason
                                               Senate Sponsor:
2
3   LONG TITLE
4   General Description:
5This bill modifies income tax provisions.
6   Highlighted Provisions:
7This bill:
8▸ amends the corporate franchise and income tax rates; and
9▸ amends the individual income tax rate;
10   Money Appropriated in this Bill:
11None
12   Other Special Clauses:
13This bill provides retrospective operation.
14   Utah Code Sections Affected:
15   AMENDS:
1659-7-104, as last amended by Laws of Utah 2025, Chapter 407
1759-7-201, as last amended by Laws of Utah 2025, Chapter 407
                                                                                                      2nd Sub. H.B. 587
1859-10-104, as last amended by Laws of Utah 2025, Chapter 407
19
20   Be it enacted by the Legislature of the state of Utah:
21Section 1. Section 59-7-104 is amended to read:
2259-7-104 . Tax -- Minimum tax.
23   (1) Each domestic and foreign corporation, except a corporation that is exempt under
24Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah
25taxable income for the taxable year for the privilege of exercising the corporation's
26corporate franchise or for the privilege of doing business in the state.
27   (2) The tax shall be [4.5] 4.45% of a corporation's Utah taxable income.
28   (3) The minimum tax a corporation shall pay under this chapter is $100.
29Section 2. Section 59-7-201 is amended to read:
 2nd Sub. (Gray) H.B. 587  02-26 08:22
3059-7-201 . Tax -- Minimum tax.
31   (1) There is imposed upon each corporation, except a corporation that is exempt under
32Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year
33that is derived from sources within this state other than income for any period that the
34corporation is required to include in the corporation's tax base under Section 59-7-104.
35   (2) The tax imposed by Subsection (1) shall be [4.5] 4.45% of a corporation's Utah taxable
36income.
37   (3) In no case shall the tax be less than $100.
38Section 3. Section 59-10-104 is amended to read:
3959-10-104 . Tax basis -- Tax rate -- Exemption.
40   (1) A tax is imposed on the state taxable income of a resident individual as provided in this
41section.
42   (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
43product of:
44(a) the resident individual's state taxable income for that taxable year; and
45(b) [4.5] 4.45%.
46   (3) This section does not apply to a resident individual exempt from taxation under Section
4759-10-104.1.
48Section 4. Effective Date.
49   This bill takes effect on May 6, 2026.
50Section 5. Retrospective operation.
51   This bill has retrospective operation for a taxable year beginning on or after January 1,
52   2026.
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