All Roll Calls
Yes: 141 • No: 1
UtahH.B. 772026 General SessionHouseWALLET
Tax Modifications
Sponsored By: Steve Eliason (Republican)
Signed by Governor
Corporate TaxIncome TaxProperty TaxPrivilege TaxProperty Tax ReliefSales and Use TaxState Tax CommissionRevenue and TaxationIndividual Income TaxLocal Option Sales TaxesLocal Taxation and FeesSales Tax ExemptionsTax Credits
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Bill Overview
Analyzed Economic Effects
20 provisions identified: 8 benefits, 7 costs, 5 mixed.
Housing investors must repay linked credits
Beginning May 6, 2026, taxpayers must repay part of their Utah low-income housing credit when federal credit repayment is required. The state repayment equals the allocated Utah credit multiplied by the federal repayment percentage. That percentage is the federal amount recaptured divided by the original federal credit amount subject to recapture.
More homeowner relief and appeal rights
Beginning May 6, 2026, homeowners under 65 can qualify for property-tax deferral or reduction through extreme hardship or disability. Household income must be below the homeowner-credit limit, and they must be unable to pay the tax when due. They must also live in the home at least 10 months of the year. People denied all or part of property-tax relief can appeal to the Utah Tax Commission, including denials for late filing. Appeals must follow the filing rules in Section 59-2-1006.
Utah ends estate transfer taxes
Utah repeals its estate transfer taxes for taxable years beginning on or after January 1, 2026. The repeal covers taxable estates of residents and nonresidents. It also removes the related estate-tax payment and administration rules.
Extra rental tax funds Fairpark district
The law adds 1.5% to the existing 2.5% tax on covered short-term vehicle rentals during the active collection period. Added revenue goes to the Utah Fairpark Area Investment and Restoration District. The franchise agreement must be dated on or before June 30, 2032. Collection starts on the first day of a calendar quarter at least 90 days after the commission receives the district's agreement certificate. Collection ends on the first day of a calendar quarter at least 90 days after receipt of the stadium-contribution completion statement.
Utah changes individual tax credit math
Beginning May 6, 2026, Utah changes the state and local income-tax amount subtracted when calculating its nonrefundable individual credit. Itemizers subtract the amount included and allowed on their federal return, replacing the former $10,000 limit in that definition. The credit remains 6% of Utah itemized deductions after that subtraction, or 6% of the federal standard deduction. It also includes 6% of the Utah personal exemption. The credit falls by 1.3 cents per dollar of state taxable income above the applicable filing-status threshold.
Utah ends cleaner-fuel tax credit
Utah repeals its tax credit for items using cleaner-burning fuels. Taxpayers cannot claim the repealed credit for taxable years beginning on or after January 1, 2026. The supplied text does not state the credit amount.
Assessors must review large value jumps
Beginning May 6, 2026, county assessors must review qualifying value jumps before delivering the assessment book. Review applies when residential value rises at least 150% above the prior year's value, or other property rises at least 350%. Increases caused solely by qualifying improvements, zoning changes, or legal-description changes are excluded. Review does not guarantee a lower value or tax bill.
Covered taxpayers get assessment time limit
Beginning May 6, 2026, the Utah Tax Commission has three years after filing to assess amounts covered by Section 59-11-113. After that period, the commission cannot begin collection proceedings unless a statutory exception applies. The limit depends on the taxpayer having filed a return.
Producer tax rule covers more relatives
The law expands immediate family for the producer sales-tax provision in Section 59-12-104(20)(a). The definition includes children, grandchildren, grandparents, nieces, nephews, parents, siblings, spouses, and spouses of the listed relatives. This extends the provision's family coverage when the producer falls within that rule.
Local tax renewals require advance notice
Beginning July 1, 2026, covered local tax renewals require timely notice to the Utah Tax Commission. Notice must arrive at least 90 days before the first day of the calendar quarter when renewal takes effect. This covers specified county, city, and town taxes, including cultural, recreation, zoological, and emergency-services taxes. The commission cannot enforce a renewed tax without timely notice.
New municipalities receive temporary tax revenue
Beginning July 1, 2026, newly incorporated municipalities receive covered county sales and use taxes collected within their boundaries. This applies when the county imposes the tax under the relevant part. Distributions start on the first day of the calendar quarter after incorporation. They end on the first day of the calendar quarter after 180 days from incorporation.
Selected projects avoid property-use tax
Beginning May 6, 2026, specified projects and properties receive exemptions from Utah's privilege tax on use or possession. Added-capacity projects qualify only to the extent subject to impact-alleviation payments, property-tax substitute fees, or property taxes. A qualified stadium is exempt during construction before title transfers to the Utah Fairpark Area Investment and Restoration District. Military Installation Development Authority-owned hotels, hotel condominium units, and commercial condominium units also qualify. Their exemption applies even with long-term private operating agreements.
Employers and producers face form penalties
Beginning January 1, 2026, covered employer and mineral-producer forms face penalties for late, inaccurate, incomplete, or improperly formatted filings. Forms filed more than 14 days but no more than 60 days late cost $30 each, capped at $75,000 yearly. Forms filed more than 60 days late but by June 1 cost $60 each, capped at $200,000 yearly. Forms filed after June 1, or not filed, cost $100 each, capped at $500,000 yearly.
Mineral producers must file electronically
Beginning May 6, 2026, mineral producers required to withhold must file electronic returns for each preceding calendar quarter. Quarterly deadlines are the last day of April, July, October, and January. Each producer must also file an electronic annual return by January 31 of the following year. Producers issuing covered withholding Forms 1099, or designated similar forms, must file them electronically by January 31 with accurate IRS-required information.
Short rentals get broader tax definition
Utah defines a short-term rental as a paid transfer of possession or control lasting less than 30 consecutive days. The definition covers real property, physical goods, and electronically transferred products. Car sharing is excluded. The definition determines which transfers fall within short-term rental sales-tax rules; it does not set a tax rate.
Homeowners share common-area tax values
Beginning May 6, 2026, parcels in a recorded subdivision share common areas equally unless recorded documents set different shares. A parcel's ownership document includes that share even without listing it separately. Assessors must use those shares and consider development limits and value transferred to nearby parcels. These rules can change how assessed value is divided among owners.
Rental tax exemptions use new rules
Beginning July 1, 2026, the county vehicle-rental tax exempts household moving vans and temporary replacement vehicles rented under repair or insurance agreements. Vehicles also qualify with a gross vehicle weight rating of at least 14,001 pounds. That replaces the former test based on registration for a gross laden weight of at least 12,001 pounds. The changed weight measure can change which rentals qualify.
Business tax election continues beyond 2025
Beginning May 6, 2026, eligible pass-through businesses can elect entity-level tax without the former tax-year window ending in 2025. Disregarded pass-through entities are excluded. The tax equals the applicable percentage times voluntary taxable income, and businesses must notify affected final owners. Payment is due by the last day of the business's tax year. The election cannot be reversed, and the payment is nonrefundable.
Sellers get revised bundle tax rules
For sales-tax bundles, an item counts as free only when including it does not change the purchased item's price. Separately identifying an item on binding sales documents or buyer-accessible supporting documents prevents treatment as one nonitemized price. Sellers must use either purchase price or sales price for the 10% and 50% tests, not a mixture. The 10% test for service contracts covers the full contract term.
Organizations use Utah income allocation rules
Beginning May 6, 2026, Utah defines unrelated business income using the federal tax definition. Only income assigned to Utah under state allocation or apportionment rules counts as Utah unrelated business income. Those rules determine the amount included in an affected organization's state tax base.
Sponsors & Cosponsors
Sponsor
Steve Eliason
Republican • House
Cosponsors
Daniel McCay
Republican • Senate
Roll Call Votes
Senate vote • 2/6/2026
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/6/2026
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/6/2026
Senate/ passed 3rd reading
Yes: 27 • No: 1
Senate vote • 2/5/2026
Senate/ passed 2nd reading
Yes: 25 • No: 0
Senate vote • 2/2/2026
Senate Comm - Favorable Recommendation
Yes: 6 • No: 0
House vote • 1/27/2026
House/ passed 3rd reading
Yes: 72 • No: 0
House vote • 1/27/2026
House/ floor amendment
Yes: 0 • No: 0
House vote • 1/21/2026
House Comm - Favorable Recommendation
Yes: 11 • No: 0
Actions Timeline
Governor Signed
3/23/2026House/ to Governor
3/12/2026HouseHouse/ received enrolled bill from Printing
3/12/2026HouseHouse/ enrolled bill to Printing
3/10/2026HouseEnrolled Bill Returned to House or Senate
3/10/2026Draft of Enrolled Bill Prepared
2/10/2026Bill Received from House for Enrolling
2/10/2026House/ signed by Speaker/ sent for enrolling
2/6/2026HouseHouse/ received from Senate
2/6/2026HouseSenate/ to House
2/6/2026SenateSenate/ signed by President/ returned to House
2/6/2026SenateSenate/ passed 3rd reading
2/6/2026SenateSenate/ uncircled
2/6/2026SenateSenate/ circled
2/6/2026SenateSenate/ 3rd reading
2/6/2026SenateSenate/ passed 2nd reading
2/5/2026SenateSenate/ 2nd reading
2/5/2026SenateSenate/ placed on 2nd Reading Calendar
2/3/2026SenateSenate/ committee report favorable
2/3/2026SenateSenate Comm - Favorable Recommendation
2/2/2026Senate/ to standing committee
1/30/2026SenateSenate/ 1st reading (Introduced)
1/28/2026SenateSenate/ received from House
1/27/2026SenateHouse/ to Senate
1/27/2026HouseHouse/ passed 3rd reading
1/27/2026House
Bill Text
Enrolled
3/10/2026
Amended 1/27/2026 11:01:361
1/27/2026
Introduced
12/23/2025