59-10-117.5. Nonresident individual wage exemption.

363 words·~2 min read·/ut/title-59/chapter-10/59-10-117-5

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 1/1/2023

(1)As used in this section:

(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.

(b)"Wages" means income that:

(i)is received by an individual for employment duties performed inside this state; and

(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:

(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;

(b)the nonresident individual is present in this state to perform employment duties for 20 or fewer days during the tax year; and

(c)the nonresident individual's state of residence:

(i)provides a substantially similar exclusion; or

(ii)does not impose a state individual income tax.

(3)This section does not apply to wages received by:

(a)an individual who is a professional athlete or a member of a professional athletic team;

(b)an individual who is a professional entertainer and who performs services in the professional performing arts;

(c)an individual of prominence who performs services for wages on a per-event basis;

(d)an individual who performs construction services to improve real property, predominantly on a construction site, as a laborer;

(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

(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:

(i)the term "employee" were substituted for the term "officer"; and

(ii)the individual is one of the non-corporate employer's 50 highest paid employees without regard to whether the individual is an officer.

Enacted by Chapter 252 , 2022 General Session