Bill > HB0162

This bill modifies local sales and use tax provisions by introducing a new "Law Enforcement Infrastructure Tax" that qualifying municipalities can impose. A qualifying municipality is defined as a city or town in a fourth, fifth, or sixth-class county that does not already impose certain other local sales and use taxes. This new tax, which can be up to 0.5%, applies to most taxable transactions within the municipality, with specific exemptions for items already exempt under state law and, generally, for food and food ingredients, unless they are part of a bundled transaction with non-food items. Before imposing this tax, the municipality must hold a public hearing and obtain approval from a majority of its legislative body, with specific notice requirements. The revenue generated from this tax must be deposited into a special fund and can only be used for infrastructure improvements for the local law enforcement agency, such as replacing or upgrading facilities, equipment, or technology, but not for personnel salaries or operational costs. The tax is levied for a 10-year period and can be reauthorized. The bill also includes provisions for how changes to this tax take effect, including notice requirements to the commission, and provides relief from liability for sellers, certified service providers, and purchasers if they rely on incorrect data provided by the commission regarding tax rates, boundaries, or the taxability of items.

https://le.utah.gov/~2026/bills/static/HB0162.html