Utah Taxes

CORPORATE INCOME TAX—Low-income housing tax credit.

The Utah State Tax Commission has issued a private letter ruling finding that the allocation of low-income housing tax credits under Utah Private Letter Ruling 02-013, 12/10/2002 for Utah corporate income tax purposes is not affected by the enactment of L. 2009, S23. Credits will continue to be allocated among the taxpayers according to the agreement between the housing sponsor and the taxpayers. Allocation by agreement is allowed even if the taxpayers are shareholders. While the Tax Commission found a statutory conflict between the credit provisions and the allocation provisions for S corporations, Utah statutory construction case law finds that when two statutes are in apparent conflict with each other, the statute dealing with the specific issues at hand governs over the general statutory provisions. Thus, the credit allocation provision under Utah Code Ann. §59-7-607 trumps the S corporation allocation provisions under Utah Code Ann. §59-10-1404.5 and Utah Code Ann. §59-10-1405. (Utah Private Letter Ruling 09-015, 10/07/2009, released September 2010.)

PERSONAL INCOME TAX—Low-income housing tax credit.

The Utah State Tax Commission has issued a private letter ruling finding that the allocation of low-income housing tax credits under Utah Private Letter Ruling 02-013, 12/10/2002 for Utah personal income tax purposes is not affected by the enactment of L. 2009, S23. Credits will continue to be allocated among the taxpayers according to the agreement between the housing sponsor and the taxpayers. Allocation by agreement is allowed even if the taxpayers are shareholders. While the Tax Commission found a statutory conflict between the credit provisions and the allocation provisions for S corporations, Utah statutory construction case law finds that when two statutes are in apparent conflict with each other, the statute dealing with the specific issues at hand governs over the general statutory provisions. Thus, the credit allocation provision under Utah Code Ann. §59-10-1010 trumps the S corporation allocation provisions under Utah Code Ann. §59-10-1404.5 and Utah Code Ann. §59-10-1405. (Utah Private Letter Ruling 09-015, 10/07/2009, released September 2010.)

PERSONAL INCOME TAX—Electronic filers handbook update.

The Utah State Tax Commission has updated Publication 59, Handbook for Electronic Filers of Utah Income Tax Returns under ELF, which provides guidance on how to participate in electronic filing, how to submit returns via electronic filing, the submission of Form TC-8453 to the Tax Commission, responsibilities of electronic filers, transmitters, and electronic return originators, and technical details and error codes for Utah electronic returns. The Internal Revenue Service and Utah acceptance testing is tentatively scheduled to begin November 9, 2010; transmitting live federal/Utah returns will begin January 14, 2011; the last day for timely transmission of Utah electronic returns is April 18, 2011; and the last day for extended filing of Utah returns is October 17, 2011. Utah individual income taxpayers who file full-year, part-year or non-resident, refund, zero balance or balance due returns are eligible to participate in the Federal/State electronic filing program. Electronic returns may not be changed or amended electronically once they have been submitted. If changes are needed after an electronic return is filed, the taxpayer must file an amended return through the paper document filing process. (Utah Informational Publication 59, 09/01/2010.)

CIGARETTE, ALCOHOL & MISCELLANEOUS TAXES—Cigarette and RYO authorized brands.

The Utah State Tax Commission has updated Publication 51, Utah Cigarettes and RYO Authorized Brands, listing all cigarettes and tobacco products certified by their manufacturers as produced for sale in-state. Products not appearing on the list are prohibited, may not be stamped, and are subject to confiscation as contraband. Listed brands include all styles of that brand unless otherwise indicated. The next scheduled update is November 1, 2010. (Utah Informational Publication 51, 10/01/2010.)