Bill > HB0162

This bill modifies the existing law regarding county option sales and use taxes for transportation purposes, primarily focusing on counties of the third through sixth class (smaller counties). The bill allows these counties to impose a sales and use tax up to 0.30% and provides new guidelines for how the generated revenues can be used. Specifically, counties imposing this tax on or after January 1, 2024, can now allocate a portion of the revenues to public safety purposes, but with significant restrictions. Public safety funding can only be used for infrastructure like jails or buildings, and cannot be used for operational expenses, vehicles, equipment, or personnel salaries, with a temporary exception for counties that have already been using these funds for personnel salaries (allowed until December 31, 2027). The bill also provides more flexibility in changing tax allocations for these smaller counties, reducing the requirement for voter approval when reallocating funds. Counties must still specify how they intend to use the tax revenues, with a focus on transportation-related projects like highways and public transit systems. The bill will take effect on January 1, 2026, giving local governments time to prepare for the new regulations.

Budget and Finance, Transportation and Infrastructure

https://le.utah.gov/~2025/bills/static/HB0162.html