Terms Used In Utah Code > Title 59 > Chapter 7 - Corporate Franchise and Income Taxes

• Adjusted income: means unadjusted income as modified by Sections 59-7-105 and 59-7-106. See Utah Code 59-7-101
• Administrator: means the same as that term is defined in Subsection (182). See Utah Code 31A-1-301
• Affiliated group: means one or more chains of corporations that are connected through stock ownership with a common parent corporation that meet the following requirements:

  (i)	at least 80% of the stock of each of the corporations in the group, excluding the common parent corporation, is owned by one or more of the other corporations in the group; and

  (ii)

  the common parent directly owns at least 80% of the stock of at least one of the corporations in the group. See Utah Code 59-7-101 Aircraft type: means a particular model of aircraft as designated by the manufacturer of the aircraft. See Utah Code 59-7-302 Airline: means the same as that term is defined in Section 59-2-102. See Utah Code 59-7-302 Airline revenue ton miles: means , for an airline, the total revenue ton miles during the airline's tax period. See Utah Code 59-7-302 Amortization: Paying off a loan by regular installments. Application: means a document: (a)  (i)  completed by an applicant to provide information about the risk to be insured; and (ii)  that contains information that is used by the insurer to evaluate risk and decide whether to: (A)  insure the risk under: (I)  the coverage as originally offered; or (II)  a modification of the coverage as originally offered; or (B)  decline to insure the risk; or (b)  used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301 Apportionable income: means adjusted income less nonbusiness income net of related expenses, to the extent included in adjusted income. See Utah Code 59-7-101 Apportioned income: means apportionable income multiplied by the apportionment fraction as determined in Section 59-7-311. See Utah Code 59-7-101 Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings. Bequest: Property gifted by will. Business income: means income that: (i)  is apportionable under the United States Constitution and is not allocated under the laws of this state, including income arising from: (A)  a transaction or activity in the regular course of the taxpayer's trade or business; and (B)  tangible and intangible property, if the acquisition, management, employment, development, or disposition of the property is or was related to the operation of the taxpayer's trade or business; or (ii)  would be allocable to this state under the United States Constitution, but is apportioned rather than allocated in accordance with the laws of this state. See Utah Code 59-7-302 Business income: means the same as that term is defined in Section 59-7-302. See Utah Code 59-7-101 Captive insurance company: means the same as that term is defined in Section 31A-1-301. See Utah Code 59-7-101 Captive real estate investment trust: means a real estate investment trust if: (i)  the shares or beneficial interests of the real estate investment trust are not regularly traded on an established securities market; and (ii)  more than 50% of the voting power or value of the shares or beneficial interests of the real estate investment trust are directly, indirectly, or constructively: (A)  owned by a controlling entity of the real estate investment trust; or (B)  controlled by a controlling entity of the real estate investment trust. See Utah Code 59-7-101 Commercial domicile: means the principal place from which the trade or business of the taxpayer is directed or managed. See Utah Code 59-7-302 Common ownership: means the direct or indirect control or ownership of more than 50% of the outstanding voting stock of: (i)  a parent-subsidiary controlled group as defined in Section 1563, Internal Revenue Code, except that 50% shall be substituted for 80%; (ii)  a brother-sister controlled group as defined in Section 1563, Internal Revenue Code; or (iii)  three or more corporations each of which is a member of a group of corporations described in Subsection (2)(a)(i) or (ii), and one of which is: (A)  a common parent corporation included in a group of corporations described in Subsection (2)(a)(i); and (B)  included in a group of corporations described in Subsection (2)(a)(ii). See Utah Code 59-7-101 Compensation: means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services. See Utah Code 59-7-302 Corporation: includes : (a)  entities defined as corporations under Sections 7701(a) and 7704, Internal Revenue Code; and (b)  other organizations that are taxed as corporations for federal income tax purposes under the Internal Revenue Code. See Utah Code 59-7-101 Corporation: means an insurance corporation, except when referring to: (i)  a corporation doing business: (A)  as: (I)  an insurance producer; (II)  a surplus lines producer; (III)  a limited line producer; (IV)  a consultant; (V)  a managing general agent; (VI)  a reinsurance intermediary; (VII)  a third party administrator; or (VIII)  an adjuster; and (B)  under: (I)  Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries; (II)  Chapter 25, Third Party Administrators; or (III)  Chapter 26, Insurance Adjusters; or (ii)  a noninsurer that is part of a holding company system under Chapter 16, Insurance Holding Companies. See Utah Code 31A-1-301 Creditor: means a person, including an insured, having a claim, whether: (a)  matured; (b)  unmatured; (c)  liquidated; (d)  unliquidated; (e)  secured; (f)  unsecured; (g)  absolute; (h)  fixed; or (i)  contingent. See Utah Code 31A-1-301 Decedent: A deceased person. Deficiency: is a s defined in Section 59-1-1402. See Utah Code 59-1-101 Dependent: A person dependent for support upon another. Devise: To gift property by will. Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial. Dividend: means any distribution, including money or other type of property, made by a corporation to its shareholders out of its earnings or profits accumulated after December 31, 1930. See Utah Code 59-7-101 Doing business: includes any transaction in the course of business by a domestic corporation or by a foreign corporation qualified to do or doing business in this state. See Utah Code 59-7-101 Domestic corporation: means a corporation that is incorporated or organized under the laws of this state. See Utah Code 59-7-101 Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller. Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006. Foreign corporation: means a corporation that is not incorporated or organized under the laws of this state. See Utah Code 59-7-101 Foreign operating company: means a corporation that: (i)  is incorporated in the United States; (ii)  conducts at least 80% of the corporation's business activity, as determined under Section 59-7-401, outside the United States; and (iii)  as calculated in accordance with 3, has: (A)  at least $1,000,000 of payroll located outside the United States; and (B)  at least $2,000,000 of property located outside the United States. See Utah Code 59-7-101 Foreign real estate investment trust: means : (i)  a business entity organized outside the laws of the United States if: (A)  at least 75% of the business entity's total asset value at the close of the business entity's taxable year is represented by: (I)  real estate assets, as defined in Section 856(c)(5)(B), Internal Revenue Code; (II)  cash or cash equivalents; or (III)  one or more securities issued or guaranteed by the United States; (B)  the business entity is: (I)  not subject to income taxation: (Aa)  on amounts distributed to the business entity's beneficial owners; and (Bb)  in the jurisdiction in which the business entity is organized; or (II)  exempt from income taxation on an entity level in the jurisdiction in which the business entity is organized; (C)  the business entity distributes at least 85% of the business entity's taxable income, as computed in the jurisdiction in which the business entity is organized, to the holders of the business entity's: (I)  shares or beneficial interests; and (II)  on an annual basis; (D)  (I)  not more than 10% of the following is held directly, indirectly, or constructively by a single person: (Aa)  the voting power of the business entity; or (Bb)  the value of the shares or beneficial interests of the business entity; or (II)  the shares of the business entity are regularly traded on an established securities market; and (E)  the business entity is organized in a country that has a tax treaty with the United States; or (ii)  a listed Australian property trust. See Utah Code 59-7-101 Health care: means any of the following intended for use in the diagnosis, treatment, mitigation, or prevention of a human ailment or impairment: (a)  a professional service; (b)  a personal service; (c)  a facility; (d)  equipment; (e)  a device; (f)  supplies; or (g)  medicine. See Utah Code 31A-1-301 Income: includes losses. See Utah Code 59-7-101 Individual: means a natural person. See Utah Code 31A-1-301 Insurance: includes : (i)  a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind; (ii)  a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and (iii)  a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301 Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes. Internal Revenue Code: means Title 26 of the United States Code as effective during the year in which Utah taxable income is determined. See Utah Code 59-7-101 mobile flight equipment: means the same as that term is defined in Section 59-2-102. See Utah Code 59-7-302 Mutual: means a mutual insurance corporation. See Utah Code 31A-1-301 Nonbusiness income: means the same as that term is defined in Section 59-7-302. See Utah Code 59-7-101 Oath: includes "affirmation. See Utah Code 68-3-12.5 Oath: A promise to tell the truth. Optional apportionment taxpayer: means a taxpayer described in Subsection (3). See Utah Code 59-7-302 Person: includes : (a)  an individual; (b)  a partnership; (c)  a corporation; (d)  an incorporated or unincorporated association; (e)  a joint stock company; (f)  a trust; (g)  a limited liability company; (h)  a reciprocal; (i)  a syndicate; or (j)  another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301 Personal property: includes :Utah Code 68-3-12.5 Personal property: All property that is not real property. Phased-in sales factor weighted taxpayer: means a taxpayer that: (i)  is not a sales factor weighted taxpayer; (ii)  does not meet the definition of an optional apportionment taxpayer; or (iii)  for a taxable year beginning on or after January 1, 2020: (A)  meets the definition of an optional apportionment taxpayer; and (B)  apportioned business income using the method described in Subsection 59-7-311(4) during the previous taxable year. See Utah Code 59-7-302 Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide. Real estate investment trust: means the same as that term is defined in Section 856, Internal Revenue Code. See Utah Code 59-7-101 real property: includes :Utah Code 68-3-12.5 Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land. Related expenses: means : (a)  expenses directly attributable to nonbusiness income; and (b)  the portion of interest or other expense indirectly attributable to both nonbusiness and business income that bears the same ratio to the aggregate amount of such interest or other expense, determined without regard to this Subsection (25), as the average amount of the asset producing the nonbusiness income bears to the average amount of all assets of the taxpayer within the taxable year. See Utah Code 59-7-101 Reporter: Makes a record of court proceedings and prepares a transcript, and also publishes the court's opinions or decisions (in the courts of appeals). return: includes a combined report. See Utah Code 59-7-101 S corporation: means an S corporation as defined in Section 1361, Internal Revenue Code. See Utah Code 59-7-101 Safe harbor lease: means a lease that qualified as a safe harbor lease under Section 168, Internal Revenue Code. See Utah Code 59-7-101 Sales: means all gross receipts of the taxpayer not allocated under Sections 59-7-306 through 59-7-310. See Utah Code 59-7-302 Sales factor weighted taxpayer: means a taxpayer described in Subsection (2). See Utah Code 59-7-302 Sell: means to exchange a contract of insurance: (a)  by any means; (b)  for money or its equivalent; and (c)  on behalf of an insurance company. See Utah Code 31A-1-301 State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. See Utah Code 59-7-302 Tax credit: means a nonrefundable tax credit listed on a tax return. See Utah Code 59-7-902 Tax return: means : (a)  a corporate return as defined in Section 59-7-101 filed in accordance with this chapter; or (b)  a tax return filed in accordance with Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act. See Utah Code 59-7-902 taxable year: includes the period for which such return is made. See Utah Code 59-7-101 Taxpayer: means any corporation subject to the tax imposed by this chapter. See Utah Code 59-7-101 Testimony: Evidence presented orally by witnesses during trials or before grand juries. Threshold level of business activity: means business activity in the United States equal to or greater than 20% of the corporation's total business activity as determined under Section 59-7-401. See Utah Code 59-7-101 Unadjusted income: includes deferred foreign income described in Section 965(a), Internal Revenue Code. See Utah Code 59-7-101 Unitary group: includes a captive real estate investment trust. See Utah Code 59-7-101 United States: includes the 50 states and the District of Columbia. See Utah Code 59-7-101 Utah net loss: means the current year Utah taxable income before Utah net loss deduction, if determined to be less than zero. See Utah Code 59-7-101 Utah net loss deduction: means the amount of Utah net losses from other taxable years that a taxpayer may carry forward to the current taxable year in accordance with Section 59-7-110. See Utah Code 59-7-101 Utah revenue ton miles: means , for an airline, the total revenue ton miles within the borders of this state: (i)  during the airline's tax period; and (ii)  from flight stages that originate or terminate in this state. See Utah Code 59-7-302 Utah taxable income: includes income from tangible or intangible property located or having situs in this state, regardless of whether carried on in intrastate, interstate, or foreign commerce. See Utah Code 59-7-101 Utah taxable income before net loss deduction: means apportioned income plus nonbusiness income allocable to Utah net of related expenses. See Utah Code 59-7-101 Worldwide combined report: means the combination of the income and activities of all members of a unitary group irrespective of the country in which the corporations are incorporated or conduct business activity. See Utah Code 59-7-101