(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.
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Terms Used In Utah Code 59-6-102

  • Business entity: means a claimant that is a:
         (1)(a) C corporation;
         (1)(b) S corporation;
         (1)(c) general partnership;
         (1)(d) limited liability company;
         (1)(e) limited liability partnership;
         (1)(f) limited partnership; or
         (1)(g) business entity similar to Subsections (1)(c) through (f):
              (1)(g)(i) with respect to which the business entity's income or losses are divided among and passed through to taxpayers; and
              (1)(g)(ii) as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 59-6-101
  • claimant: means a resident or nonresident person. See Utah Code 59-6-101
  • Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
  • Estate: means a nonresident estate or a resident estate. See Utah Code 59-6-101
  • Minerals: means :
         (4)(a) metalliferous minerals as defined in Section 59-2-102;
         (4)(b) nonmetalliferous minerals as defined in Section 59-2-102; or
         (4)(c) a combination of Subsections (4)(a) and (b). See Utah Code 59-6-101
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: means :
         (24)(a) an individual;
         (24)(b) an association;
         (24)(c) an institution;
         (24)(d) a corporation;
         (24)(e) a company;
         (24)(f) a trust;
         (24)(g) a limited liability company;
         (24)(h) a partnership;
         (24)(i) a political subdivision;
         (24)(j) a government office, department, division, bureau, or other body of government; and
         (24)(k) any other organization or entity. See Utah Code 68-3-12.5
  • Producer: means a person that:
         (5)(a) produces or extracts minerals from deposits in this state; or
         (5)(b) is the first purchaser of minerals produced or extracted from deposits in this state. See Utah Code 59-6-101
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • tax credit: means a tax credit that a claimant, estate, or trust may claim:
         (6)(a) as provided by statute; and
         (6)(b) regardless of whether the claimant, estate, or trust has a tax liability:
              (6)(b)(i) for a tax imposed under:
                   (6)(b)(i)(A) Chapter 7, Corporate Franchise and Income Taxes;
                   (6)(b)(i)(B) Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act; or
                   (6)(b)(i)(C) Chapter 10, Individual Income Tax Act; and
              (6)(b)(ii) for the taxable year for which the claimant, estate, or trust claims the tax credit. See Utah Code 59-6-101
  • Tax return: means a return required by:
         (8)(a) Chapter 7, Corporate Franchise and Income Taxes;
         (8)(b) Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act; or
         (8)(c) Chapter 10, Individual Income Tax Act. See Utah Code 59-6-101
  • Trust: means a nonresident trust or a resident trust. See Utah Code 59-6-101
  • United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(2) The obligation to deduct and withhold from payments as provided in Subsection (1) does not apply to those payments which are payable to:

     (2)(a) the United States, this state, or an agency or political subdivision of the United States or this state;
     (2)(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);
     (2)(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; or
     (2)(d) a business entity that files an exemption certificate in accordance with Section 59-6-102.1.
(3) A claimant, estate, or trust that files a tax return with the commission may claim a refundable tax credit against the tax reflected on the tax return for the amount withheld by the producer under Subsection (1).

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