All Roll Calls
Yes: 174 • No: 0
UtahS.B. 272025 General SessionSenateWALLET
Motor Vehicle Division Amendments
Sponsored By: Wayne A. Harper (Republican)
Signed by Governor
BoatingMotor Vehicle InsuranceSales and Use TaxMotor VehiclesMotorcyclesTransportationVehicle RegistrationOff-highway VehiclesDivision of Motor VehiclesTransportation Funding
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Bill Overview
Analyzed Economic Effects
29 provisions identified: 17 benefits, 2 costs, 10 mixed.
State revenue supports Utah transportation projects
Each fiscal year, Utah directs a formula-based share of specified state tax revenue to the Transportation Investment Fund of 2005. The formula starts with 26.24% of that revenue. It subtracts $1.8134 million and a separate earmark specified in the law. It also subtracts 35% of current-year fuel-tax revenue generated by rates above 29.4 cents per gallon. This funds transportation rather than providing direct household payments.
Uninsured boats face seasonal registration loss
The law's motorboat registration-revocation rules take effect May 7, 2025; the initial insurance-notice requirement begins January 1, 2026. The notice process follows a finding that a boat was uninsured for two consecutive months. Initial notices, second notices, and registration revocations apply only April through October. After the designated agent reports qualifying conduct, Utah must revoke registration for missing proof after a second notice or false statements. The agent shares related information with law enforcement year-round.
Off-road motorcycles and snowmobiles drop plates
Beginning May 7, 2025, off-highway motorcycles and snowmobiles no longer need an off-highway vehicle license plate. Owners must still obtain and display an off-highway vehicle registration sticker. This changes the display requirement, not the need to register.
Qualifying off-road motorcycles gain road access
Beginning May 7, 2025, modified off-highway motorcycles can qualify as street-legal all-terrain vehicles, which count as motor vehicles. Road use requires compliance with equipment, registration, licensing, insurance, and speed rules. Interstate highways and areas closed to motor vehicles remain off-limits. Certain highways in first-class counties near grade-separated highway sections also remain off-limits when posted above 50 miles per hour. Nonresidents qualify for reciprocal privileges only when their home state authorizes highway use and offers reciprocity to Utah residents.
Street-legal all-terrain vehicles avoid extra fees
Beginning May 7, 2025, vehicles registered as street-legal all-terrain vehicles do not owe the additional motor vehicle registration fee. Their off-highway vehicle registration and other fees still apply. The provision does not state the amount saved.
Lower sales taxes in affected counties
Beginning July 1, 2026, Utah removes the Part 18 rate from state sales tax calculations in counties charging it. The specified 4.70% state rate and other applicable state rates remain. This also covers the specified bundled purchases of food and other goods. Savings depend on the purchase amount and the removed rate, which the provision does not state.
Tax relief for qualifying Navajo-area purchases
Beginning July 1, 2026, qualifying accommodations and services in Utah's Navajo Nation taxing areas are exempt from specified Utah sales taxes. The Nation must impose and collect tax regardless of whether the buyer is an enrolled member. Sellers still collect any amount by which the Utah tax exceeds the Navajo Nation tax. Utah gives no refund or credit when that difference is zero or less.
Counties get search and rescue support
Utah dedicates $200,000 annually solely to the Search and Rescue Financial Assistance Program. Beginning July 1, 2026, counties can receive reimbursement for all or part of eligible search-and-rescue base expenses. Reimbursements require advisory board approval and available funds; regular or permanent payroll salaries and overtime are excluded. Ten percent of dedicated-credit revenue is reserved to promote the Search and Rescue Assistance Card Program.
Watersheds and cloud seeding receive funding
Utah provides $500,000 annually to the Department of Natural Resources for watershed rehabilitation or restoration. Any unspent restoration money moves to the Water Resources Conservation and Development Fund at year-end. The Division of Water Resources also receives $150,000 annually for cloud-seeding projects authorized by state law.
Annual funding for emergency food help
Utah deposits $533,750 each fiscal year into the Qualified Emergency Food Agencies Fund. The money supports qualifying emergency food agencies and must follow the fund's spending rules. This supports food assistance, but the law does not set a household benefit amount or eligibility formula.
Fairpark and Point receive development revenue
Beginning October 1, 2024, specified state sales tax revenue from the Fairpark district's sales tax area goes to the district. Beginning July 1, 2026, the Point of the Mountain State Land Authority receives 50% of specified sales tax revenue from its state land. Point distributions start in the calendar quarter at least 90 days after receipt of an accurate, certified map, including added land. They end in the quarter at least 90 days after the Tax Commission receives notice that revenue-backed bonds are fully paid.
Funding supports active transportation and canyons
Utah deposits $45 million annually into the Active Transportation Investment Fund. The Cottonwood Canyons Transportation Investment Fund also receives 0.44% of specified state tax revenue each year. These allocations fund transportation accounts without naming specific projects or providing direct household payments.
Outdoor recreation infrastructure gets dedicated revenue
Utah directs 1% of specified state tax revenue each year to the Outdoor Recreation Adventure Infrastructure Restricted Account. The dollar amount changes with state revenue. This allocation does not identify specific projects or provide direct household payments.
Water-rights cases receive annual staffing support
Utah provides $175,000 each year for legal and technical staff handling water-rights cases. At year-end, half of any unspent money moves to the Water Resources Conservation and Development Fund. The wastewater and drinking-water loan accounts each receive 25% of the unspent money.
Annual funding supports water and sewer systems
Each year, Utah deposits $7.175 million into the Water Resources Conservation and Development Fund. Authorized uses include water and ground studies, required dam-safety work, and protection of Utah's interstate water allocations, including related staff. Wastewater and drinking-water loan accounts each receive $3.5875 million annually. Drinking-water money can support collection, treatment, storage, distribution, and development of water sources. The Division of Conservation also receives $525,000 annually for water programs.
State revenue supports major water projects
Each year, Utah directs 1.4543% of specified state tax revenue to the Water Infrastructure Restricted Account. A separate formula subtracts specified statutory deposits from an amount equal to 1.4543% of that revenue. The Water Resources Conservation and Development Fund receives 85% of that formula amount. That money funds specified Bear River Development and Lake Powell Pipeline preconstruction and engineering-oversight costs before other authorized uses.
Transit and commuter rail receive funding
Each year, the Transit Transportation Investment Fund receives 35% of fuel-tax revenue generated by rates above 29.4 cents per gallon. The Commuter Rail Subaccount receives 1% of specified state tax revenue annually. Beginning July 1, 2026, the law creates that subaccount for commuter rail improvements, including grade-separated crossings. It can also receive appropriations, private contributions, donations, and grants; appropriated money does not expire at budget-period end. Rail spending must follow Transportation Commission priorities or legislative direction.
Sales tax revenue supports Medicaid funding
For fiscal years beginning on or after July 1, 2019, Utah sends specified sales tax revenue to the Medicaid ACA Fund. The transfer covers revenue collected at a 0.15% rate on the transactions identified in the law. This directs program funding; it does not change Medicaid eligibility or set household benefit amounts.
Higher taxes on short-term vehicle rentals
The law adds a 1.5% tax to qualifying vehicle rentals and leases lasting 30 days or less. This is on top of the existing 2.5% rental tax; the listed exemptions remain. The provision takes effect July 1, 2026, but collection starts on a separate transition date. A required certificate must confirm a franchise agreement dated on or before June 30, 2032. Collection starts on the first calendar-quarter day at least 90 days after the state receives that certificate. The extra revenue goes to the Fairpark district until its stadium contribution is paid. Collection ends on the first calendar-quarter day at least 90 days after the state receives verification of payment.
Automated safety stops aren't considered parking
Beginning May 7, 2025, a vehicle is not considered parked while its automated driving system is engaged and it reaches the legally defined minimal risk condition. This changes how traffic-code parking rules apply only in that specific situation.
More towed vehicles count as trailers
Utah's trailer definition covers unpowered vehicles designed to carry people or property and be pulled by a motor vehicle. It no longer excludes a vehicle just because some weight rests on the towing vehicle. This changes which vehicles fall under trailer rules, without stating a specific new fee.
Personal vehicle owners gain registration options
Beginning May 7, 2025, even one noncommercial personal vehicle can qualify as a fleet for these registration rules. Beginning January 1, 2026, owners or lessees can apply for a different fleet registration schedule, subject to Tax Commission approval. Periods begin February 1, May 1, August 1, or November 1 and end that month's last day the following year. Adjustment fees equal 25% of regular fees for up to three months, or 50% for over three through six months. They equal 75% for over six through nine months, or 100% for over nine through 12 months.
Off-road riders face helmet and flag rules
Beginning May 7, 2025, riders under 18 must wear properly fitted and fastened helmets on off-highway motorcycles on public land. Helmets must be designed for motorized vehicles and rated by the U.S. Department of Transportation; nobody may permit a minor's violation. On designated sand dunes, off-highway motorcycle riders must display a red or orange flag at least 6 by 12 inches. The flag must attach to protective headgear at least 18 inches above the rider's head.
Farm vehicles get low-cost sticker option
Beginning May 7, 2025, qualifying agricultural off-highway vehicles can get a farm-use sticker costing no more than $10. Applicants must show ownership, provide a title or manufacturer's certificate of origin, and sign a statement confirming agricultural use. Recreational use on public land, trails, streets, or highways also requires off-highway vehicle registration.
Sensitive species get restricted protection funding
Utah provides $2.45 million annually to protect sensitive plant and animal species, including authorized grants to local governments. The money cannot help anyone list or seek to list a species as federally threatened or endangered. At year-end, half of unspent money moves to the Water Resources Conservation and Development Fund. The wastewater and drinking-water loan accounts each receive 25% of the unspent money.
Hotel funds change sources and support
Beginning July 1, 2026, specified state sales tax revenue goes to the Convention Incentive Fund. The Hotel Impact Mitigation Fund no longer lists the specified Division of Finance deposits as a funding source. Required county deposits remain, and host local governments or qualified hotel owners can contribute voluntarily. The economic opportunity office continues payments to affected hotels to offset direct losses, capped at $2.1 million annually. Payments run for four consecutive years, starting 12 months after a qualified hotel's initial occupancy, and follow office rules.
Water-rights funding comes with spending limits
Each year, the Water Rights Restricted Account receives 15% of 1.4543% of specified revenue, after subtracting specified statutory deposits. Beginning July 1, 2026, its updated funding rules allow spending only after lawmakers approve it. Money can cover water-rights case costs; surface- and groundwater data costs cannot exceed 5% of qualifying prior-year deposits. Any year-end balance above $8 million moves to the Water Resources Conservation and Development Fund.
Car sharing gets separate tax classification
For Utah sales tax definitions, a short-term rental lasts less than 30 consecutive days and excludes car sharing. Shared vehicles, drivers, and owners use the definitions in Utah's car-sharing law. These definitions alone do not state a resulting tax rate or change in user costs.
Sales tax agreements cover another tax
Beginning July 1, 2026, Utah adds another sales and use tax to its definition of taxes covered by certain agreements. This definition change does not itself state a new tax rate or a change in household tax bills.
Sponsors & Cosponsors
Sponsor
Wayne A. Harper
Republican • Senate
Cosponsors
Kay J. Christofferson
Republican • House
Roll Call Votes
Senate vote • 2/27/2025
Senate/ concurs with House amendment
Yes: 26 • No: 0
House vote • 2/26/2025
House/ passed 3rd reading
Yes: 66 • No: 0
House vote • 2/26/2025
House/ floor amendment
Yes: 0 • No: 0
House vote • 2/14/2025
House Comm - Amendment Recommendation
Yes: 10 • No: 0
House vote • 2/14/2025
House Comm - Favorable Recommendation
Yes: 10 • No: 0
Senate vote • 2/5/2025
Senate/ passed 3rd reading
Yes: 28 • No: 0
Senate vote • 2/4/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/4/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/4/2025
Senate/ passed 2nd reading
Yes: 24 • No: 0
Senate vote • 1/29/2025
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
Senate vote • 1/29/2025
Senate Comm - Substitute Recommendation
Yes: 5 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
House vote • Unknown
House/ floor amendment
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/25/2025Senate/ to Governor
3/12/2025SenateSenate/ received enrolled bill from Printing
3/12/2025SenateSenate/ enrolled bill to Printing
3/7/2025SenateEnrolled Bill Returned to House or Senate
3/7/2025Draft of Enrolled Bill Prepared
3/3/2025Bill Received from Senate for Enrolling
3/3/2025Senate/ signed by President/ sent for enrolling
2/27/2025SenateSenate/ received from House
2/27/2025SenateHouse/ to Senate
2/27/2025HouseHouse/ signed by Speaker/ returned to Senate
2/27/2025HouseHouse/ received from Senate
2/27/2025HouseSenate/ to House
2/27/2025SenateSenate/ concurs with House amendment
2/27/2025SenateSenate/ placed on Concurrence Calendar
2/26/2025SenateSenate/ received from House
2/26/2025SenateHouse/ to Senate
2/26/2025HouseHouse/ passed 3rd reading
2/26/2025HouseHouse/ floor amendment
2/26/2025HouseHouse/ 3rd reading
2/26/2025HouseHouse/ 2nd reading
2/18/2025HouseHouse/ comm rpt/ amended
2/18/2025HouseHouse Comm - Favorable Recommendation
2/14/2025HouseHouse Comm - Amendment Recommendation
2/14/2025HouseHouse/ to standing committee
2/13/2025House
Bill Text
Enrolled
3/7/2025
Amended 2/26/2025 11:02:664
2/26/2025
Amended 2/18/2025 10:02:708
2/18/2025
Substitute #1
1/23/2025
Introduced
12/18/2024