All Roll Calls
Yes: 179 • No: 43
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
42 provisions identified: 26 benefits, 6 costs, 10 mixed.
Stronger release protections for towing customers
Owners can call to request release of a vehicle, vessel, or outboard motor towed without their consent. This enforcement rule excludes tows ordered by law enforcement. A person acting for a towing carrier, operator, or impound lot can be charged for failing to release property as required. Local law enforcement, the Utah Highway Patrol, and the Motor Vehicle Enforcement Division can enforce the rule.
One-year funding for Utah road projects
For the fiscal year beginning July 1, 2025, Utah can use up to $300 million for SR-89 improvements in a first-class county. That money covers land acquisition and construction. For that same fiscal year only, the department can use $3 million for the I-15 Salem and Benjamin environmental study. It must also send $2 million to Kane County for the Coral Pink Sand Dunes Road project.
Mileage charges for alternative-fuel vehicle owners
Approved alternative-fuel vehicle owners or lessees enrolled in Utah's road usage program pay based on reported miles. Beginning January 1, 2026, the base rate is 1.25 cents per mile, capped at $180 annually or $139 per six months. Beginning January 1, 2032, the stated rate is 1.5 cents per mile, unless the Transportation Commission sets another rate. The 2032 caps are $240 annually or $185 per six months. Rates and caps receive annual inflation adjustments.
More commuter rail funding with repayment
The FrontRunner double-tracking bond allocation rises from $232 million to $530 million, repaid from the Transit Transportation Investment Fund. Before issuance, the Utah Transit Authority must agree to pay $5 million yearly for 15 years toward repayment. A new commuter rail account funds infrastructure improvements, including highway crossings separated from tracks. The Transportation Commission must prioritize these projects, or the Legislature must direct them. Beginning July 1, 2026, construction materials bought by or for Utah's transportation department are tax-exempt for department-supervised fixed-guideway transit projects.
Utah authorizes major highway project funding
Beginning May 6, 2026, Utah can issue general obligation bonds with up to $264 million for transportation acquisition and construction. Additional amounts cover issuance costs, capitalized interest, and qualifying debt reserves. Added funding for existing debt-reserve requirements cannot exceed 1% of the transportation department's certified amount. Beginning July 1, 2026, the director can use $705 million for listed highway projects, including widening, interchanges, connectors, and environmental studies. U-111 construction is subject to a land-dedication requirement and the law's alternative two-lane scope.
Stronger enforcement when impounded property stays
People acting for tow companies, tow operators, or state impound yards may be charged for failing to release property as required. This covers vehicles, vessels, and outboard motors. Local police, the Utah Highway Patrol, and the Motor Vehicle Enforcement Division can enforce the rule. This provision does not state a penalty amount.
No sales tax on qualifying cannabinoids
Beginning July 1, 2026, buyers do not pay sales tax on products meeting Utah's legal definition of a cannabinoid product. Savings depend on the purchase amount and applicable tax rate.
Tax savings for coached recreation admissions
Beginning July 1, 2026, qualifying admissions to indoor skydiving, rock climbing, or surfing facilities are exempt from sales tax. A trained instructor must stay with the participant throughout the activity, in person or by video. The instructor must actively teach, which can include observing the participant or giving feedback.
Tax savings on adaptive driving equipment
Beginning July 1, 2026, qualifying adaptive driving equipment is exempt from sales tax. The equipment must be uninstalled or installed in a vehicle by a previous owner. Equipment installed by a previous owner must also meet Utah's legal requirements for this exemption.
Tax savings on qualifying metal currency
Beginning July 1, 2026, qualifying notes, leaves, foils, and films used as currency are exempt from sales tax. They must not be legal tender of any state, the United States, or a foreign nation. At least 50% of their metallic content must be gold, silver, or platinum. A clear polymer holder, coating, or case does not count when measuring metallic content.
Limits on tow dispatch technology demands
Beginning May 6, 2026, dispatch vendors cannot supply tools that require tow operators to use wireless devices illegally. Towing entities also cannot hire vendors that require such use. Towing entities and dispatch vendors cannot require carriers or operators to provide information to databases outside those allowed by state law.
Buses get limited bike-lane access
Beginning May 6, 2026, school buses and qualifying public transit vehicles can briefly block parking or bike lanes. This is allowed for passenger loading, unloading, or operational adjustments along their planned route and schedule. Qualifying public transit vehicles can also use bike lanes for those tasks.
Cottonwood Canyons get dedicated transportation support
The law creates the Cottonwood Canyons Transportation Investment Fund within the Transportation Investment Fund of 2005. It receives specified deposits, state appropriations, private contributions, donations, and grants. The Legislature can use it for transit or transportation projects in Salt Lake County's Cottonwood Canyons. Separately, the transportation department can use up to 2% of specified deposited tax revenue for necessary local-government public-safety enforcement contracts there. No total funding amount is stated.
County tax money can support safety
Beginning July 1, 2026, a qualifying second-class county can use specified county-option sales tax distributions for public safety. The county must impose the county-option sales and use tax covered by this law. This expands allowed spending; it does not impose a new tax or require public-safety spending.
Local road funds can build park-and-rides
Beginning May 6, 2026, counties and municipalities can use class B and class C road funds to build park-and-ride facilities. The law expands allowed uses of existing road money. It does not require a facility to be built or specify an allocation.
More groups qualify for crossing grants
Beginning May 6, 2026, qualifying public entities and private 501(c)(3) nonprofits can apply for railroad-crossing safety grants. The public-entity definition includes an independent entity located in a first-class county. Grant projects must improve crossings on class A, B, or C roads. The provision states no grant amount.
Utah can fund urgent disaster transportation
Beginning May 6, 2026, Utah's transportation director can set urgent project priorities and funding during or after a natural disaster. Projects must repair damaged transportation infrastructure or provide temporary infrastructure or programs supporting disaster response. The director must reasonably try to convene the commission and can act only when it cannot meet in time. Each approved project must receive less than $10 million. The director must promptly notify the governor, Legislature, and commission, add the decision to the next commission agenda, and report when requested.
Utah can handle broader environmental reviews
Beginning May 6, 2026, Utah's transportation department can assume specified federal environmental review duties for transportation projects beyond highways. The authority covers transportation design and construction projects and specific transportation projects under the applicable federal delegation laws. The broader review program requires approval from the United States Department of Transportation.
Utah trail funds cover more work
The Active Transportation Investment Fund can pay for Utah trail planning, design, construction, upkeep, reconstruction, and renovation. Trail projects must be prioritized by the Transportation Commission through its required process. The fund can also support a statewide trail plan, preserve future trail routes, and cover fund administration. These provisions state no new funding amount.
County highway reimbursements last another year
Beginning May 6, 2026, the first-class county highway fund's reimbursement schedule extends through fiscal year 2027-28. It already covers fiscal years 2024-25, 2025-26, and 2026-27. Listed allocations range from $470,000 to $10.5 million. Payments go only to listed projects and recipients, as work progresses and revenue remains after required prior distributions.
Dedicated funding for Cottonwood transit access
Starting with the budget year beginning July 1, 2025, Utah's transportation department must direct qualifying sales and use tax growth to Big Cottonwood Canyon. The money funds public transit hub construction and routes into and out of the hub. The funding comes from collections above fiscal year 2025 levels. The law does not state the amount available.
Local communities receive road project money
Beginning July 1, 2026, Utah must distribute $28 million for four local road projects. This includes $5 million for Payson Main Street repairs and $8 million for Bluffdale's 14600 South railroad bypass. It also includes $5 million for Taylorsville's 4700 South improvements and $10 million for west-side U.S. 40 frontage roads between mile markers 7 and 10. These distributions depend on project costs and local cash-flow statements showing need. Utah must also provide Spanish Fork $13 million for land and work connecting Fingerhut Road over the railroad to U.S. Highway 6.
More public entities can seek infrastructure loans
Beginning May 6, 2026, legally defined independent entities can seek State Infrastructure Bank assistance and loans. Independent entities located in a first-class county can also seek that county's infrastructure bank assistance and loans. Projects must meet the applicable transportation or publicly owned infrastructure definitions and planning requirements. No loan amount is specified.
Electrical cooperatives get facility tax relief
Beginning July 1, 2026, specified payments connected to electrical cooperative facilities are exempt from sales tax. The facilities must be owned by or built for a distribution or wholesale electrical cooperative. Covered payments relate to construction, operation, maintenance, repair, or replacement. The law does not state whether household electricity bills change.
Energy storage manufacturers save sales tax
Beginning July 1, 2026, operators of qualifying energy storage manufacturing facilities get sales tax exemptions on specified purchases. Covered property includes materials incorporated into equipment or devices that store and discharge energy. Purchased or leased machinery, equipment, and normal repair or replacement parts also qualify when used exclusively to operate the facility.
Rail buyers save tax on Utah equipment
Beginning July 1, 2026, buyers do not pay sales tax on rail rolling stock manufactured in Utah. Rolling stock includes vehicles that run on rail tracks. The exemption does not guarantee lower fares or better service.
Related construction businesses save materials tax
Beginning July 1, 2026, qualifying related businesses can sell covered construction materials to each other without sales tax. Covered materials include sand, gravel, rock aggregate, and cement products. Both establishments must have 100% common ownership or control, directly or indirectly. Each must fall within the 2022 industry classifications for heavy and civil engineering construction or nonmetallic mineral product manufacturing.
Service businesses save tax on supplies
Beginning July 1, 2026, service providers get a sales tax exemption for property needed and used up in specified taxable services. The property must disappear or become unusable for any other purpose. The exemption excludes machinery, equipment, parts, office supplies, electricity, gas, heat, steam, and other fuels.
Sports venue builders save materials tax
Beginning July 1, 2026, construction materials used to build a stadium meeting Utah's legal definition are exempt from sales tax. A separate exemption covers materials to build, remodel, or refurbish a legally defined major sporting event venue. For that exemption, the venue must be within an approved major sporting event venue zone.
Mobile businesses face event street limits
Beginning May 6, 2026, Utah local governments can bar mobile businesses from streets temporarily closed for special events or mass gatherings. The ban can also cover sidewalks next to those streets. Local governments are allowed, but not required, to impose these bans.
New certification rules for tow businesses
Beginning May 6, 2026, tow carriers must maintain an online presence that meets state rules to receive certification. Utah's transportation department must set those online requirements. Authorized tow operators or carriers seeking release of impounded vehicles, vessels, or outboard motors must also provide the driver's Utah tow operator certificate. Other release requirements still apply.
Added fees for heavier commercial electric vehicles
Beginning May 6, 2026, heavier commercial electric vehicles carry an added fee at registration or renewal. It applies at a gross combined weight rating of at least 6,001 pounds and equals the road usage charge cap. Beginning January 1, 2027, enrolled vehicles in this class have caps of $500 annually or $385 per six months. Those caps receive annual inflation adjustments. Enrolled vehicles' actual mileage charges depend on miles driven and the applicable rate.
Ineligible communities lose transportation funding access
Beginning July 1, 2026, Utah cannot schedule certain transportation investment money after receiving a community's statutory ineligibility notice. The restriction covers projects inside that municipality or the affected unincorporated county area. It ends when the state's Housing and Community Development Division reports that ineligibility no longer applies. Exceptions cover specified limited-access roads and fixed-guideway projects serving multiple communities, but specified interchange and station construction remains barred. Projects scheduled before July 1, 2022, are exempt.
Local walking projects require larger contributions
Beginning July 1, 2026, local governments must pay at least 40% of costs to receive funding for covered paved walking or nonmotorized projects. Projects must reduce congestion on the state highway system. They must also follow a department-approved active transportation plan and receive commission priority.
New towing fees with clearer invoices
Beginning May 6, 2026, towing entities can charge a dispatch fee capped at 50% of the referenced administrative fee. Operators or carriers can pass it to owners, lienholders, or insurers of towed vehicles, vessels, or outboard motors. They can also charge for unrecovered abandoned-vehicle costs, capped at 40% of the dispatch fee. The combined total of these fees must appear on a separate invoice line.
Salt Lake City faces road-change rules
Salt Lake City must agree with Utah's transportation department, rank roads, and publish a critical capacity routes map by January 1, 2027. The area lies west of Foothill Drive, east of Redwood Road, and south of 600 North to the city's southern boundary. Tier-one road-reduction strategies are generally barred, except for safety improvements subject to review and approval. Tier-two strategies need data, impact studies, community and business input, and state approval. Where possible, tier-one and tier-two travel lanes must be at least 11 feet wide. Tier-three strategies cannot permanently narrow a highway lane below 10 feet. Removing three or more parking stalls on a tier-one or tier-two block face requires nearby stakeholder input; the city must notify the department if it proceeds. Mitigation plans for specified previously changed road segments need state approval, and annual reports begin November 30, 2027. Beginning May 6, 2026, the law repeals earlier mobility-plan approval and related city and state analysis duties. It also removes the scheduled July 1, 2029 repeal of the highway-strategy subsection.
Public property transfers face cancellation rules
For deeds recorded after May 6, 2026, the intended public recipient can cancel a real-property transfer before approval. That power ends when an approval affidavit is recorded or an authorized public employee or officer signs the deed, whichever happens first. This protects the public recipient but leaves the transfer subject to cancellation until approval. Beginning May 6, 2026, Utah's transportation department is excluded from these public-entity deed procedures.
Bus replacement grants require local matches
Beginning July 1, 2026, the commission can prioritize up to $3 million for bus replacement. Providers must be in third- through sixth-class counties and have received no covered new-project transit investment funding in the previous 36 months. The required local match is 50% where the county and municipality have imposed five optional sales taxes. The match is 60% for four taxes and 70% for three or fewer. If requests exceed $3 million, the commission must establish a process to rank awards.
More transit options with local matches
Beginning May 6, 2026, fixed-guideway capital development includes transit facilities and related infrastructure for the Point of the Mountain State Land Authority. Beginning July 1, 2026, the commission can prioritize transit investment money for qualifying public transit innovation grants. These support capital projects requested by local governments within transit districts. Local public entities must cover at least 30% of covered transit capital or transit-connected walking and nonmotorized project costs. A commission-approved State Infrastructure Bank loan can count if the commission prioritizes the project; department-proposed projects and specified local-option-tax-funded projects are exempt.
Rail repairs and cleaner trains get support
Beginning May 6, 2026, Utah can use remaining Rail Transportation Subaccount money to build, rebuild, or renovate state-owned rail infrastructure affected by erosion. The law also requires a large public transit district to pay the department $5 million yearly for 15 years under an agreement. Those payments help purchase zero-emission or low-emission rail engines and trainsets for regional transit rail systems. The agreement had to be entered into before July 1, 2022.
Transit corridor funding needs commission approval
The Transportation Commission can prioritize Transit Transportation Investment Fund money to preserve corridors for future transportation routes. The transportation director can spend corridor-preservation money only on a commission-prioritized project or with commission approval. For an unprioritized project, the commission must find that spending will not delay a prioritized project.
County transit taxes shift toward rail
Beginning July 1, 2026, qualifying counties initially send designated transit tax revenue to their county legislative body for its chosen purpose. This applies to non-first-class counties fully annexed into a large transit district that impose the county-option tax. The initial period ends three years after at least three qualifying counties adopt the tax, or June 30, 2030, whichever comes first. The later split begins at that three-year trigger or July 1, 2030, whichever comes first. Half then goes to the Commuter Rail Subaccount, and half stays with the county for an allowed transit purpose.
Sponsors & Cosponsors
Sponsor
Wayne A. Harper
Republican • Senate
Cosponsors
Kay J. Christofferson
Republican • House
Roll Call Votes
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
House vote • 3/6/2026
House/ passed 3rd reading
Yes: 55 • No: 14
Senate vote • 3/6/2026
Senate/ circled
Yes: 0 • No: 0
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/ uncircled
Yes: 0 • No: 0
Senate vote • 2/26/2026
Senate/ passed 3rd reading
Yes: 20 • No: 7
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/ substituted
Yes: 0 • No: 0
Senate vote • 2/23/2026
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • 2/9/2026
Senate Comm - Favorable Recommendation
Yes: 4 • No: 2
Senate vote • 2/9/2026
Senate Comm - Substitute Recommendation
Yes: 5 • No: 0
Actions Timeline
Governor Signed
3/25/2026Senate/ to Governor
3/13/2026SenateSenate/ received enrolled bill from Printing
3/13/2026SenateSenate/ enrolled bill to Printing
3/11/2026SenateEnrolled Bill Returned to House or Senate
3/11/2026Draft of Enrolled Bill Prepared
3/10/2026Bill Received from Senate for Enrolling
3/10/2026Senate/ signed by President/ sent for enrolling
3/10/2026SenateSenate/ received from House
3/10/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ signed by Speaker/ returned to Senate
3/6/2026HouseHouse/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate/ concurs with House amendment
3/6/2026SenateSenate/ uncircled
3/6/2026SenateSenate/ circled
3/6/2026SenateSenate/ placed on Concurrence Calendar
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ passed 3rd reading
3/6/2026HouseHouse/ substituted
3/6/2026HouseHouse/ 3rd reading
3/6/2026HouseHouse/ Rules to 3rd Reading Calendar
3/5/2026HouseHouse/ 3rd Reading Calendar to Rules
3/3/2026HouseHouse/ 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