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.

Terms Used In Utah Code 59-7-303

(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
  • Income: includes losses. See Utah Code 59-7-101
  • Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
  • return: includes a combined report. 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
  • 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
  • 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
    • (2)  Any taxpayer having income solely from business activity taxable within this state shall allocate or apportion the taxpayer’s entire adjusted income to this state.

    (3) 

    (a)  Notwithstanding Subsections (1) and (2), for a taxable year beginning on or after January 1, 2022, a taxpayer may elect to treat all of the taxpayer’s income from sales of intangible property as business income.

    (b)  A taxpayer shall make the election described in Subsection (3)(a) on or before the deadline for filing a return under an extension of time described in Section 59-7-505.

    (c)  An election under this Subsection (3) is irrevocable.

    Amended by Chapter 228, 2022 General Session

      Previous section
    Next section  
     Part 3 Contents