UtahS.B. 2422026 General SessionSenateWALLET

Transportation Amendments

Sponsored By: Wayne A. Harper (Republican)

Signed by Governor

CountiesBusinessConveyancesClean FuelsEmergency PowersLegislative OperationsLegislative Committees and Task ForcesLegislative OrganizationMunicipalitiesPolitical Subdivisions (Local Issues)Department of Public SafetyGovernment Operations (State Issues)Sales and Use TaxRevenue and TaxationMotor VehiclesRailroadsTransportationDepartment of TransportationTransportation CommissionVehicle RegistrationPublic Transit DistrictsTowingTransportation FundActive TransportationCommercial Motor Vehicle RegulationLocal Option Sales TaxesPublic TransitReal PropertySales Tax ExemptionsTrailsTransit Transportation Investment FundTransportation Funding

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Bill Overview

Analyzed Economic Effects

24 provisions identified: 8 benefits, 7 costs, 9 mixed.

Big road and city project funding

Beginning July 1, 2026, $705 million is set aside for named highway and right‑of‑way projects. For the fiscal year that starts July 1, 2025, $3 million funds an I‑15 environmental study, $2 million passes through to Kane County for Coral Pink Sand Dunes Road, and up to $300 million funds SR‑89 work in a first‑class county. The law also sends $28 million to local projects (Payson $5M, Bluffdale $8M, Taylorsville $5M, U.S. 40 frontage roads $10M) and $13 million to Spanish Fork to connect Fingerhut Road over the railroad to U.S. 6. Each year, fixed transfers go to named cities and the county of the first class for congestion and safety projects for 15 years (subject to proportional reduction). Cities also receive reimbursements in FY24–FY28 as projects progress and money is available, and $2 million per year goes to a first‑class county transit district after required checks. The law clarifies allowed uses of the main transportation fund, focusing on prioritized highway projects, corridor preservation, and bond payments.

Major rail projects funded by bonds

Up to $530 million in bond money pays to double‑track parts of FrontRunner. UTA must pay $5 million per year for 15 years toward repayment. Another $29 million goes to Brigham City for the Forest Street rail bridge, and $3 million goes to North Salt Lake for an environmental study for a grade separation at 1100 North. Rail bond payments come from a designated rail account until repaid.

Rules and limits for state bonds

Before issuing certain transportation bonds, the department and commission present needs to the Executive Appropriations Committee. The state then moves fund money to pay current‑year bond principal, interest, and issuance costs. General obligation bonds for acquisition and construction are capped at $264 million plus issuance costs and up to 1% for capitalized interest and reserve needs. The state cannot issue these bonds if total outstanding general obligation debt would exceed 50% of the constitutional limit.

Sales tax break for DOT projects

Beginning July 1, 2026, construction materials bought by or for the Transportation Department for fixed‑guideway projects are exempt from state sales tax. Tangible property used to build, operate, maintain, repair, or replace a defined “project,” or to add project capacity, is also exempt. This lowers costs for contractors and suppliers working on qualifying projects.

New transit funds and local match

The state creates a Transit Transportation Investment Fund for transit projects and studies (up to $500,000 per year for studies). To get funded, local transit sponsors usually must cover at least 30% of project costs; a state infrastructure bank loan can count, some county revenues are exempt, and state‑proposed projects do not need a match. A commuter rail subaccount and a rail safety subaccount are added; 10% of rail safety deposits fund grants, 10% fund studies or listed debt, and the rest fund crossing projects. Up to $3 million can fund transit innovation grants. Starting July 1, 2026, up to $3 million can help small‑county providers replace buses, with a 50%–70% local match based on local taxes. The state may swap state dollars for equal or greater federal funds, and fixed‑guideway projects explicitly include strategic double‑tracking and Point of the Mountain transit.

Trails and Cottonwood Canyons funding

The law defines the Utah Trail Network and creates an Active Transportation Fund to plan, build, and maintain priority trail projects. It also creates a Cottonwood Canyons fund for local transit and transportation in Salt Lake County’s canyons. Up to 2% of a listed revenue stream may pay for public‑safety enforcement. Starting with the fiscal year that began July 1, 2025, sales‑tax growth above 2025 levels funds access to a Big Cottonwood Canyon transit hub.

How county transit tax is spent

Starting July 1, 2026, the state splits county transit tax money among transit districts, cities, towns, counties, and providers based on county class and annexation. Money marked for transit may pay both capital and service costs. Early on, some first‑class county transit revenue goes to a county highway projects fund and can support transit innovation grants; after the transition, it splits 50/50 with a commuter rail subaccount. For other annexed counties, early revenue goes to the county, then later splits 50/50 between the county and the commuter rail subaccount. Cities must send at least 50% of certain receipts to a convention center public infrastructure district during a listed project’s bond term. City and town shares are split half by population and half by where sales occur. Counties, cities, and towns cannot use the new tax to replace existing General Fund transit or road budgets. In Salt Lake County, a separate transfer share rises from 20% to 33% beginning FY2028 for 20 years.

Higher fines and fees on vehicles

If the state finds you are a resident who did not register, title, or pay required taxes on a vehicle or vessel, you owe a $150 penalty and get 60 days to comply. If you still do not comply, you owe the larger of the tax penalty in law or $500; the state can waive or reduce penalties. If your vehicle is impounded under the listed laws, you must pay a $425 administrative impound fee and a $30 testing fee, plus towing and storage, and complete any needed registration before release. These release fees apply beginning May 6, 2026.

New registration fees and per mile charge

Beginning May 6, 2026, base registration fees are set by vehicle type (for example: motorcycle $46; cars 14,000 lb or less $44; hybrid $21.75; plug‑in hybrid $56.50). Fees change each January 1 by the Consumer Price Index, rounded to $0.25. Electric cars pay the road‑usage‑charge cap amount at registration. If you enroll an alternative‑fuel vehicle, you pay 1.25¢/mile from Jan 1, 2026, capped at $180 yearly or $139 for six months; from Jan 1, 2032, it is 1.5¢/mile with $240 and $185 caps unless the commission sets a different rate. Also from Jan 1, 2032, the commission may set different per‑mile rates for each alternative‑fuel vehicle type. Starting May 6, 2026, owners of vehicles with an automated driving system present in the state for over 30 straight days are treated as residents for registration. Farm‑truck registration is allowed only if the truck meets the farm‑truck definition and is over 14,000 lb, or is 14,000 lb or less with an emissions certificate or waiver.

Caps on heavy electric truck charges

Beginning January 1, 2027, electric commercial vehicles with a gross combined weight of 6,001 pounds or more pay road‑usage charges up to a cap. The annual cap is $500, and the six‑month cap is $385. Operators pay per‑mile charges up to the cap for each registration period.

Easier food-truck rules, with event limits

Starting May 6, 2026, cities and counties may not fully or indirectly ban mobile businesses where restaurants are allowed. They cannot set minimum distances from restaurants, cap total days of operation, require site plans and dates for each stop, or limit days on private property with the owner’s consent or require written consent or a site plan for operations under 10 hours per week. During temporary mass gatherings or special events, a city may prohibit mobile businesses on closed streets and the sidewalks next to them.

New rules for buses and bikes

From May 6, 2026, school buses and public transit vehicles may briefly use a parking or bike lane while on their route for stops or operations. Drivers may pass a bicycle or moped in a two‑way left‑turn lane only on wider roads, when the center lane is clear, and there is one lane in their direction. These rules aim to improve safety and traffic flow.

New 'circulator alley' street type

The law defines a "circulator alley" as a public, paved passage at least 20 feet wide inside a master planned community. Cities can use it for garbage pickup, garage access, and rear commercial access as part of the street network.

Public property deeds need sign-off

For deeds recorded after May 6, 2026, a public entity can void a transfer to it until it records an approval affidavit or an authorized official signs the deed. The Transportation Department is not treated as a "public entity" for this rule.

County transit sales tax option

Beginning July 1, 2026, your county may add a 0.2% sales tax to fund highways or transit. The tax starts on the first day of a calendar quarter after a 90‑day notice to the state. Counties may ask voters for input but do not have to. If your county adopts it, you pay 0.2% more on taxable purchases in that county.

Road-usage charges rise with inflation

Each January 1, the state increases the road‑usage charge rate and caps by the prior fiscal year’s Consumer Price Index change, but not below zero. Rates round to the nearest 0.01 cent per mile and caps round to the nearest $0.25. The state publishes the updated rate and caps by January 1 each year.

Scenic byways and spaceport panel end

The Utah State Scenic Byway Program ends on January 2, 2030. The Spaceport Exploration Committee ends on July 1, 2027.

Statewide towing fees and protections

Starting May 6, 2026, tow companies may add a dispatch fee up to 50% of the listed administrative fee and an abandoned‑vehicle fee up to 40% of the dispatch fee. They must file an electronic impound report by noon the next business day before charging removal or storage. They must accept cash and cards, let you get life‑essential items without paying, and allow removal of other items after you pay the towing fee. Local rules that conflict with state tow laws are barred, and no storage fee is allowed when a county holds a car as evidence and will not release it. Tow carriers cannot be forced to buy extra local licenses or duplicate certificates, face only one free annual safety inspection that follows federal rules, and dispatch vendors cannot also provide towing or require illegal phone use or extra databases. From each $425 state impound fee: $29 goes to the Motor Vehicle Division, $147 to Public Safety, $20 to the Brain & Spinal Cord Injury Fund, and the rest to the General Fund; the $30 testing fee goes to the State Laboratory Drug Testing Account.

Limits on funding in some cities

If a city is declared HUD‑ineligible, the state may not program Transportation Investment Fund money for commission‑prioritized projects in that city until eligibility returns. Exceptions allow certain limited‑access highways and interchanges, and multi‑city fixed‑guideway projects (not stations), and do not affect projects programmed before July 1, 2022. Corridor‑preservation money goes first to commission‑prioritized projects; non‑prioritized corridors may get money only if the commission finds no delay to prioritized work.

Salt Lake City road capacity rules

Salt Lake City must, by January 1, 2027, sign an agreement with the state to tier roads in a study area and adopt a critical capacity routes map. Tier 1 roads are generally protected from lane reductions; Tier 2 changes need data, public input, and state approval; Tier 3 allows city‑needed reductions. The city must plan mitigation for some past traffic measures and report yearly starting November 30, 2027.

State takes on federal reviews

The Transportation Department may assume certain federal environmental reviews under 23 U.S.C. 326–327, sign agreements with USDOT, and follow federal standards for qualified projects. The state also waives Eleventh Amendment immunity for federal suits that arise only from those assumed duties, but only if UDOT signs an MOU accepting federal jurisdiction, the Attorney General issues a validating opinion, and the MOU was in effect when the act occurred. These steps can speed projects while narrowly increasing legal exposure.

U-111 work limited without land

The U‑111 project cannot start until required non‑federal right‑of‑way is dedicated to the state. If it was not dedicated by October 1, 2024, the project may proceed only as a two‑lane road between Herriman Parkway and 11800 South.

Rules for county transit sales tax

Starting July 1, 2026, cities, towns, and counties must spend their share of the county transit sales tax only on allowed uses. Some counties may use portions for public safety, and a city tied to a revitalization effort may fund a county‑owned convention center. A large transit district must give the state tax commission 90 days’ notice before the earlier of three years after at least three counties adopt the tax or June 30, 2030.

Transportation funds and powers updated

The Transportation Investment Fund of 2005 is clarified to include specific taxes, fees, transfers, contributions, and bond proceeds, and interest stays in the fund. The law expands "state transportation purposes" to include mitigating project impacts and other duties. The Transportation Infrastructure General Fund Support Subfund is repealed on July 1, 2028. The UDOT executive director must be a registered professional engineer and a qualified executive.

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Sponsors & Cosponsors

Sponsor

  • Wayne A. Harper

    Republican • Senate

Cosponsors

  • Kay J. Christofferson

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 179 • No: 43

House vote 3/6/2026

House/ substituted

Yes: 0 • No: 0

Senate vote 3/6/2026

Senate/ concurs with House amendment

Yes: 18 • No: 9

Senate vote 3/6/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 3/6/2026

Senate/ circled

Yes: 0 • No: 0

House vote 3/6/2026

House/ passed 3rd reading

Yes: 55 • No: 14

House vote 3/3/2026

House Comm - Favorable Recommendation

Yes: 9 • No: 1

House vote 3/3/2026

House Comm - Amendment Recommendation

Yes: 11 • No: 0

House vote 3/3/2026

House Comm - Amendment Recommendation

Yes: 11 • No: 0

House vote 3/3/2026

House Comm - Amendment Recommendation

Yes: 11 • No: 0

House vote 3/2/2026

House Comm - Motion to Recommend Failed

Yes: 4 • No: 4

House vote 3/2/2026

House Comm - Substitute Recommendation

Yes: 8 • No: 0

Senate vote 2/26/2026

Senate/ passed 3rd reading

Yes: 20 • No: 7

Senate vote 2/26/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 2/26/2026

Senate/ floor amendment

Yes: 0 • No: 0

Senate vote 2/24/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote 2/23/2026

Senate/ passed 2nd reading

Yes: 23 • No: 6

Senate vote 2/23/2026

Senate/ floor amendment

Yes: 0 • No: 0

Senate vote 2/23/2026

Senate/ substituted

Yes: 0 • No: 0

House vote 2/9/2026

Senate Comm - Substitute Recommendation

Yes: 5 • No: 0

House vote 2/9/2026

Senate Comm - Favorable Recommendation

Yes: 4 • No: 2

Actions Timeline

  1. Governor Signed

    3/25/2026
  2. Senate/ to Governor

    3/13/2026Senate
  3. Senate/ received enrolled bill from Printing

    3/13/2026Senate
  4. Senate/ enrolled bill to Printing

    3/11/2026Senate
  5. Enrolled Bill Returned to House or Senate

    3/11/2026
  6. Draft of Enrolled Bill Prepared

    3/10/2026
  7. Bill Received from Senate for Enrolling

    3/10/2026
  8. Senate/ signed by President/ sent for enrolling

    3/10/2026Senate
  9. Senate/ received from House

    3/10/2026Senate
  10. House/ to Senate

    3/6/2026House
  11. House/ signed by Speaker/ returned to Senate

    3/6/2026House
  12. House/ received from Senate

    3/6/2026House
  13. Senate/ to House

    3/6/2026Senate
  14. Senate/ concurs with House amendment

    3/6/2026Senate
  15. Senate/ uncircled

    3/6/2026Senate
  16. Senate/ circled

    3/6/2026Senate
  17. Senate/ placed on Concurrence Calendar

    3/6/2026Senate
  18. Senate/ received from House

    3/6/2026Senate
  19. House/ to Senate

    3/6/2026House
  20. House/ passed 3rd reading

    3/6/2026House
  21. House/ substituted

    3/6/2026House
  22. House/ 3rd reading

    3/6/2026House
  23. House/ Rules to 3rd Reading Calendar

    3/5/2026House
  24. House/ 3rd Reading Calendar to Rules

    3/3/2026House
  25. House/ 2nd reading

    3/3/2026House

Bill Text

  • Enrolled

    3/11/2026

  • Substitute #4

    3/6/2026

  • Amended 3/3/2026 19:03:474

    3/3/2026

  • Substitute #3

    2/28/2026

  • Amended 2/26/2026 12:02:137

    2/26/2026

  • Amended 2/24/2026 10:02:565

    2/24/2026

  • Substitute #2

    2/19/2026

  • Substitute #1

    2/9/2026

  • Introduced

    2/3/2026

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