Bill > HB0216

This bill establishes a new mechanism for tracking and managing potential increases in state income tax revenue resulting from federal tax law changes. Specifically, the bill creates an "Income Tax Surplus Restricted Account" within the state's Income Tax Fund, which will be funded when specified state entities (the tax commission, legislative fiscal analyst, and governor's budget office) collectively determine that a federal tax law change is likely to generate a "material increase" in state income tax revenue. A "material increase" is defined as a net revenue increase of 0.5% or more compared to the previous fiscal year's income tax revenues. The bill requires these entities to annually review federal tax law changes, submit reports to the Revenue and Taxation Interim Committee, and provide an estimate of potential revenue increases. If such an increase is predicted, the Division of Finance will deposit the estimated additional revenue into the new restricted account at the end of the fiscal year. The account can then be used for purposes specified by the Legislature, consistent with constitutional guidelines. The bill is set to take effect on July 1, 2025, and is designed to provide more transparency and proactive management of potential unexpected income tax revenue growth resulting from federal tax law modifications.

Budget and Finance

https://le.utah.gov/~2025/bills/static/HB0216.html