BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX
:
Petitioners, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
OPERATIONS
DIVISION : Appeal No. 92-1269
UTAH STATE TAX COMMISSION, :
: Account
No. XXXXX
:
Respondent. : Tax Type: Individual Income
_____________________________________
STATEMENT OF CASE
This
matter was submitted to the Tax Commission for its final determination without a
hearing at the request of the parties.
FINDINGS OF FACT
The
Tax Commission adopts the Stipulation of Facts submitted and signed by the
parties as the findings of fact in this case. (Exhibit A)
CONCLUSIONS OF LAW
As
discussed at Utah Code59-10-102(1), the intent of Utah's individual income tax
statutes is "to impose on each resident individual...for each taxable year
a tax measured by the amount of this "taxable income" for such year,
as determined for federal income tax purposes, subject to certain adjustments..."
One
such adjustment is found at Utah Code59-10-114(2):
(2) There shall be
subtracted from federal taxable income of a resident or nonresident individual:
(e) for each taxpayer
age 65 or over before the close of the taxable year, a $7,500 personal
retirement exemption;
(3)(b) For purposes of
Subsection (2)(e), the amount of the personal retirement exemption shall be
further reduced according to the following schedule;
(i) for married
taxpayers filing joint returns, for each $1 of adjusted gross income
earned over $32,000, the amount of the personal retirement exemption shall be
reduced by 50 cents. (Utah Code Ann.
§59-10-114.) (emphasis added)
DECISION AND ORDER
Petitioners,
like all taxpayers, report their federal adjusted gross income on their state
return. Then, as per federal and/or
state provisions, Petitioners make necessary adjustments. In this particular case, Petitioners may
then subtract the interest earned from federal obligations as provided at line
9 of the state form. This effectively
excluded the federal interest from the state taxable income calculation.
Not
to be confused with state taxable income, the amount of the retirement income
deduction is a separate calculation. Since this computation is a means-based
adjustment, the federal interest is included.
Based upon the foregoing, the Tax Commission
finds that Petitioners correctly filed their XXXXX return in the first
instance. Their amended return,
requesting a refund based upon the matter discussed in this case, is
denied. It is so ordered.
DATED
this 12th day of May, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner