2006 Utah Code - 59-6-102 — Producer\'s obligation to deduct and withhold payments -- Amount -- Exempt payments -- Credit against tax.

     59-6-102.   Producer's obligation to deduct and withhold payments -- Amount -- Exempt payments -- Credit against tax.
     (1) Except as provided in Subsection (2), each producer shall deduct and withhold from each payment being made to any person in respect to production of minerals in this state, but not including that to which the producer is entitled, an amount equal to 5% of the amount which would have otherwise been payable to the person entitled to the payment.
     (2) Notwithstanding Subsection (1), the obligation to deduct and withhold from payments as provided in Subsection (1) does not apply to those payments which are payable to:
     (a) the United States, this state, or an agency or political subdivision of the United States or this state;
     (b) an organization that is exempt from the taxes imposed by Chapter 7, Corporate Franchise and Income Taxes, in accordance with Subsection 59-7-102(1)(a); or
     (c) an Indian or Indian tribe if the amounts accruing are subject to the supervision of the United States or an agency of the United States.
     (3) A claimant, estate, or trust that files a tax return with the state in accordance with the following is entitled to a refundable tax credit against the tax reflected on the return for the amount withheld by the producer under Subsection (1):
     (a) Chapter 7, Corporate Franchise and Income Taxes;
     (b) Chapter 8, Gross Receipts Tax on Certain Corporations not Required to Pay Corporate Franchise or Income Tax Act; or
     (c) Chapter 10, Individual Income Tax Act.

Amended by Chapter 221, 2006 General Session
Amended by Chapter 223, 2006 General Session