UtahH.B. 4252026 General SessionHouseWALLET

Local Government Fees Amendments

Sponsored By: Karen M. Peterson (Republican)

Signed by Governor

CountiesPublic Utilities and TechnologyLaw Enforcement and Criminal JusticeMunicipalitiesPolitical Subdivisions (Local Issues)Public SafetyTransportationCounty and Municipal FinanceLocal Government OrdinancesLocal Taxation and FeesTransportation FundingTransportation Related FeesBroadband

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Cities and towns face emergency-fee limits

Beginning May 6, 2026, cities and towns generally cannot charge general fees for police, fire, 911 ambulance, paramedic, or emergency services. Fees for volunteer public safety services remain allowed. Fees imposed before January 1, 2026, can remain when they fund public safety agreements with other local governments. That exception covers towns and third-, fourth-, and fifth-class cities; councils must vote to renew fees at least every three years after January 1, 2026. Prohibited fees imposed before May 6, 2026, must end by July 1, 2027.

Cities must end most broadband fees

Beginning May 6, 2026, cities generally cannot charge a general broadband fee. Cities with fees imposed before that date must end them by July 1, 2027, unless a bond exception applies. The exceptions cover fees securing bonds issued before May 6, 2026, or paying city bonds issued before January 1, 2026. Those fees must end within 60 days after the bond is paid. The law does not set a dollar reduction in customer bills.

Tax-exempt property gains city fee protection

Beginning May 6, 2026, city transportation utility fees must respect Utah's constitutional property-tax exemptions when a court classifies them as property taxes. A city cannot require payment for property, or its use, that qualifies for that constitutional exemption. Both the court ruling and the property-tax exemption must apply; tax-exempt status alone does not remove the fee.

Local transportation fees get new safeguards

Beginning May 6, 2026, cities, towns, and counties can charge transportation utility fees under new limits. County fees fund county-owned and operated facilities. Before setting or raising fees, local governments must study transportation needs, existing funding gaps, and how charges relate to users' benefits or needs. They must post the study if they have a website, give public notice, and hold a hearing; municipal fee votes must be separate from budget votes and other items. Rates must use traffic, vehicle, and trip data, excluding the lowest-traffic day of the week—not property ownership or market value. Property size counts only when it objectively affects traffic or trips. Rates must use reasonable user groups, with data supporting differences; municipal groups cannot depend on residence inside or outside city limits. Users can appeal classifications; municipal appeals require evidence of actual traffic or trips and an explanation of why the classification is unreasonable. Money must stay in a separate transportation fund for building, upgrading, replacing, maintaining, operating, or repairing facilities and reasonable related administration. It cannot replace existing general-fund transportation spending, apart from a narrow exception for previously designated capital or reserve accounts. Each government can have only one fee at a time and must review it annually, with written reporting to the state auditor. Fee ordinances face local referendum and expire after 10 years unless adopted again; a later county fee ordinance restarts that period. Transportation fees imposed before May 6, 2026, must meet the new rules or end by July 1, 2027.

Sponsors & Cosponsors

Sponsor

  • Karen M. Peterson

    Republican • House

Cosponsors

  • Brady Brammer

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 124 • No: 0

Senate vote • 2/27/2026

Senate/ passed 3rd reading

Yes: 26 • No: 0

Senate vote • 2/26/2026

Senate/ passed 2nd reading

Yes: 20 • No: 0

Senate vote • 2/23/2026

Senate Comm - Favorable Recommendation

Yes: 3 • No: 0

House vote • 2/18/2026

House/ passed 3rd reading

Yes: 68 • No: 0

House vote • 2/6/2026

House Comm - Favorable Recommendation

Yes: 7 • No: 0

Actions Timeline

  1. Governor Signed

    3/24/2026
  2. House/ to Governor

    3/12/2026House
  3. House/ received enrolled bill from Printing

    3/12/2026House
  4. House/ enrolled bill to Printing

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

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

    3/3/2026
  7. Bill Received from House for Enrolling

    3/3/2026
  8. House/ signed by Speaker/ sent for enrolling

    2/27/2026House
  9. House/ received from Senate

    2/27/2026House
  10. Senate/ to House

    2/27/2026Senate
  11. Senate/ signed by President/ returned to House

    2/27/2026Senate
  12. Senate/ passed 3rd reading

    2/27/2026Senate
  13. Senate/ 3rd reading

    2/27/2026Senate
  14. Senate/ passed 2nd reading

    2/26/2026Senate
  15. Senate/ 2nd reading

    2/26/2026Senate
  16. Senate/ placed on 2nd Reading Calendar

    2/23/2026Senate
  17. Senate/ committee report favorable

    2/23/2026Senate
  18. Senate Comm - Favorable Recommendation

    2/23/2026
  19. Senate/ to standing committee

    2/20/2026Senate
  20. Senate/ 1st reading (Introduced)

    2/18/2026Senate
  21. Senate/ received from House

    2/18/2026Senate
  22. House/ to Senate

    2/18/2026House
  23. House/ passed 3rd reading

    2/18/2026House
  24. House/ 3rd reading

    2/18/2026House
  25. House/ 2nd reading

    2/9/2026House

Bill Text

  • Enrolled

    3/11/2026

  • Introduced

    1/29/2026

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