§ 59-10-117.5 — Nonresident individual wage exemption.

Utah § 59-10-117.5

• Jurisdiction: Utah
• Title 59: Revenue and Taxation
• Ch. 59-10: Individual Income Tax Act
• Part 59-10-1: Determination and Reporting of Tax Liability and Information

Text

(1) As used in this section:

(1)(a) "Day" means any period of time during a calendar day that an individual is present in the state, unless the presence is solely for transportation through the state.
(1)(b) "Wages" means income that:
(1)(b)(i) is received by an individual for employment duties performed inside this state; and
(1)(b)(ii) would be subject to withholding in accordance with Section 59-10-402 without regard to Subsection 59-10-402(5)(a).
(2) A nonresident individual's wages may not be considered income derived from Utah sources if:

(2)(a) the nonresident individual has no other income from sources within this state for the taxable year in which the nonresident individual receives the wages;
(2)(b) the nonresident individual is present in this state to perform employment duties for 20 or fewer days during the tax year; and
(2)(c) the nonresident individual's state of residence:
(2)(c)(i) provides a substantially similar exclusion; or
(2)(c)(ii) does not impose a state individual income tax.
(3) This section does not apply to wages received by:

(3)(a) an individual who is a professional athlete or a member of a professional athletic team;
(3)(b) an individual who is a professional entertainer and who performs services in the professional performing arts;
(3)(c) an individual of prominence who performs services for wages on a per-event basis;
(3)(d) an individual who performs construction services to improve real property, predominantly on a construction site, as a laborer;
(3)(e) an individual who is a key employee, without regard to ownership or the existence of a benefit plan, for the year immediately preceding the current tax year pursuant to Subsection 416(i), Internal Revenue Code; or
(3)(f) an individual who is an employee of a non-corporate employer, and who would be a key employee without regard to ownership or the existence of a benefit plan, for the year immediately preceding the current tax year pursuant to Subsection 416(i), Internal Revenue Code, if:
(3)(f)(i) the term "employee" were substituted for the term "officer"; and
(3)(f)(ii) the individual is one of the non-corporate employer's 50 highest paid employees without regard to whether the individual is an officer.

Legislative History

Enacted by Chapter 252, 2022 General Session