2002 Legislation and Tax Law Changes – Withholding Taxes

HB 91 Mineral Production Tax Withholding Amendments

Utah Code 59-6-102

Effective Date July 1, 2002

Provides that 501(c)(3) organizations exempt from corporate franchise or income taxes are also exempt from mineral production tax withholding.

The obligation to deduct and withhold from payments an amount equal to 5% of the amount which would have otherwise been payable to the person entitled to the payment, does not apply to those payments which are payable to:

1. The United States, this state, or any agency or political subdivision of either one; or
2. An organization that is exempt from the taxes imposed by Chapter 7, Corporate Franchise and Income Taxes.