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Senate advances SB143 to extend pass‑through rules to trusts and estates
Summary
Senate Bill 143, expanding pass‑through entity treatment to include certain trusts and estates and creating a waiver/certificate process to ease compliance for minor beneficiaries, advanced on the Senate floor and was placed on the third‑reading calendar; later read for third time with a 25–0 recorded vote.
SALT LAKE CITY — The Utah Senate moved Senate Bill 143 forward on Feb. 2 to extend pass‑through entity provisions to trusts and estates and to create administrative safeguards for small or out‑of‑state beneficiaries.
Sen. Niederhauser, the sponsor, said the measure continues earlier policy work to include trusts and estates in pass‑through tax treatment for LLCs, partnerships and S corporations and to reduce compliance burdens where withholding would otherwise be required. Sen. Bramble offered an amendment establishing a waiver process that grants a certificate and a rebuttable presumption defense against penalties if an entity otherwise qualified but missed paperwork; sponsors described the amendment as friendly and appropriate for tax practice.
Floor discussion focused on technical compliance questions, the practical problem of minor beneficiaries and confirming that the amendment is consistent with tax practice. After debate, the Senate voted to read the bill for a third time and later recorded a final tally of 25 yay votes, 0 nay and 4 absent, placing the bill on the third‑reading calendar.
