BEFORE THE UTAH STATE TAX COMMISSION
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
(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
Joe B. Pacheco S. Blaine Willes