Utah: Legislation Pending Signature Would Amend Corporate Nexus Standard

Legislation (Senate Bill 28) that has passed both houses of the Utah Legislature would, if signed by Governor Herbert, expand the state’s corporate income tax doing business standard. Effective for tax years beginning on or after January 1, 2019, Senate Bill 28 would amend the definition of “doing business” in the corporate tax code to include a taxpayer that is selling or performing a service in Utah or earning income from the use of intangibles in Utah.  The definitions of “doing business” and “exercising a corporate franchise” would not include the business activity of a corporation if the corporation’s only business activity in Utah was the solicitation of orders for sales of tangible personal property protected under Public Law 86-272.  Please stay tuned to TWIST for future legislative updates.