UtahS.B. 402025 General SessionSenateWALLET

Sales and Use Tax Act Amendments

Sponsored By: Daniel McCay (Republican)

Signed by Governor

Sales and Use TaxState Tax CommissionRevenue and TaxationLocal Option Sales Taxes

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 3 costs, 3 mixed.

Counties can renew cultural taxes without voters

Third-, fourth-, fifth-, and sixth-class Utah counties can renew their cultural and recreational sales tax without another public vote. Residents must first have approved the tax for two consecutive 10-year periods. After that, renewal requires a majority vote of the county legislative body. The county must post the tax’s purposes at least 24 hours before voting and use the money for those purposes.

Higher taxes on short-term vehicle rentals

The law adds a 1.5% tax on covered short-term vehicle rentals in Utah, alongside the existing 2.5% tax. The extra money goes to the Fairpark district for its stadium contribution. The franchise agreement must be dated on or before June 30, 2032. Collection starts on the first calendar-quarter day at least 90 days after the Tax Commission receives the board’s agreement certificate. Collection and distribution stop on the first calendar-quarter day at least 90 days after the Commission receives written confirmation of completed stadium-contribution payments. Exemptions cover vehicles weighing 12,001 pounds or more when loaded, household moving vans, and qualifying repair or insurance replacement rentals.

Sellers face deadline for tax-error protection

The law limits how long sellers and certified service providers can avoid liability for uncollected tax caused by state database errors. Protection ends on the first calendar-quarter day after 90 days have passed from the Tax Commission’s first error notice. Sellers can then face liability for continuing to use the incorrect information.

Rural health taxes get one-time renewal exception

Rural county health care taxes and rural city hospital taxes can be renewed at the end of each 10-year period. Taxes imposed on or before January 1, 2024, get a one-time exception from voter approval. The county or city legislative body can approve the first renewal ending a 10-year period after that date. Later renewals require voter approval and otherwise follow the rules for starting the tax. Renewals continue local health funding while also continuing the tax paid by consumers.

County funding thresholds can change yearly

Each year by July 1, a first-class Utah county can index operating-cost thresholds used to allocate local tax money. These include the threshold for organizations eligible for a 45% allocation. They also include the $1.5 million average annual operating-cost threshold for zoological facilities and organizations. Changes must be rounded to the nearest $100 and can change which groups qualify for funding.

County tax starts and stops follow deadlines

Covered county taxes start or end on the first calendar-quarter day after a 90-day period following Tax Commission notice. Notice must state the action, legal authority, and effective date; a new tax notice must also state its rate. Billing-period and catalogue-sale rules can affect the date. The waiting period delays new tax charges, but also delays tax relief after a repeal.

Sponsors & Cosponsors

Sponsor

  • Daniel McCay

    Republican • Senate

Cosponsors

  • Steve Eliason

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 139 • No: 0

Senate vote • 3/7/2025

Senate/ circled

Yes: 0 • No: 0

Senate vote • 3/7/2025

Senate/ concurs with House amendment

Yes: 24 • No: 0

Senate vote • 3/7/2025

Senate/ uncircled

Yes: 0 • No: 0

House vote • 3/7/2025

House/ substituted

Yes: 0 • No: 0

House vote • 3/7/2025

House/ passed 3rd reading

Yes: 70 • No: 0

House vote • 2/28/2025

House Comm - Substitute Recommendation

Yes: 10 • No: 0

House vote • 2/28/2025

House Comm - Favorable Recommendation

Yes: 10 • No: 0

Senate vote • 1/21/2025

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 25 • No: 0

Senate vote • 1/21/2025

Senate/ circled

Yes: 0 • No: 0

Senate vote • 1/21/2025

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ circled

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ circled

Yes: 0 • No: 0

House vote • Unknown

House/ substituted

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ uncircled

Yes: 0 • No: 0

Actions Timeline

  1. Governor Signed

    3/25/2025
  2. Senate/ to Governor

    3/17/2025Senate
  3. Senate/ received enrolled bill from Printing

    3/17/2025Senate
  4. Senate/ enrolled bill to Printing

    3/14/2025Senate
  5. Enrolled Bill Returned to House or Senate

    3/14/2025
  6. Draft of Enrolled Bill Prepared

    3/12/2025
  7. Bill Received from Senate for Enrolling

    3/12/2025
  8. Senate/ signed by President/ sent for enrolling

    3/12/2025Senate
  9. Senate/ received from House

    3/12/2025Senate
  10. House/ to Senate

    3/8/2025House
  11. House/ signed by Speaker/ returned to Senate

    3/8/2025House
  12. House/ received from Senate

    3/8/2025House
  13. Senate/ to House

    3/7/2025Senate
  14. Senate/ concurs with House amendment

    3/7/2025Senate
  15. Senate/ uncircled

    3/7/2025Senate
  16. Senate/ circled

    3/7/2025Senate
  17. Senate/ placed on Concurrence Calendar

    3/7/2025Senate
  18. Senate/ received from House

    3/7/2025Senate
  19. House/ to Senate

    3/7/2025House
  20. House/ passed 3rd reading

    3/7/2025House
  21. House/ substituted

    3/7/2025House
  22. House/ 3rd reading

    3/7/2025House
  23. House/ Rules to 3rd Reading Calendar

    3/7/2025House
  24. House/ 3rd Reading Calendar to Rules

    3/4/2025House
  25. House/ 2nd reading

    3/3/2025House

Bill Text

  • Enrolled

    3/14/2025

  • Substitute #2

    3/2/2025

  • Substitute #1

    2/27/2025

  • Introduced

    12/20/2024

Related Bills

Back to State Legislation