Bill > SB0219

This bill modifies the tax apportionment rules for financial institutions by introducing detailed definitions and new calculation methods for their sales factor. The bill defines key terms like "finance lease" and "financial institution", expanding the definition to include various types of banking and financial entities, such as bank holding companies, national banks, savings associations, and corporations that derive significant income from finance leases. It establishes a comprehensive framework for determining what constitutes a financial institution for tax purposes. The bill also specifies how sales should be calculated for tax apportionment, explicitly stating that for financial institutions, the sales factor numerator cannot include sales from investment and trading activities, while the denominator must include such sales. Additionally, the bill requires the tax commission to create rules for determining sales factors for financial institutions, with the goal of creating a more precise method for calculating business income tax. The changes will take effect for taxable years beginning on or after January 1, 2026, giving financial institutions and tax authorities time to prepare for the new regulations.

Budget and Finance

https://le.utah.gov/~2025/bills/static/SB0219.html