HB 107 Utah House · 2026 General Session

Vehicle Sales Tax Amendments

HB 107 creates a sales tax exemption for the purchase price of a lower-priced vehicle when a person buys and sells two vehicles in separate transactions. It requires buyers to pay registration fees by the end of the month following expiration (with late penalties) and makes new registrations effective in the same month as the previous registration. The bill eliminates the "cure period" for tax violations and redirects penalties from vehicle tax violations to the state General Fund. It primarily affects Utah residents who trade vehicles, simplifying tax treatment for such transactions without adding new state spending.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 20, 2026 Last action Mar 7, 2026

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What changed between versions

Substitute #1 → Substitute #2 · 7 edits

MODERATE

The bill fundamentally changes how Utah handles vehicle sales tax for people buying and selling cars. Instead of simply exempting the tax on the cheaper car (which was the previous approach), the new version creates an income tax credit. This means the tax is still collected first, but the taxpayer gets money back later through their income tax return. The bill also adds new tax exemptions for specific industries like data centers and energy storage facilities, and creates a new restricted account to fund law enforcement training.

Scope change

The scope of the vehicle sales tax relief changed from a direct exemption at the point of sale to a refundable income tax credit claimed later. Additionally, the scope of tax exemptions was expanded to include new categories for data centers, energy storage, and specific industrial machinery.

ELIGIBILITY

Vehicle sales tax relief for buying and selling cars changed from a direct exemption to a refundable income tax credit claimed within one year of the transaction.

FISCAL

Created a new 'Uninsured Motorist Identification Restricted Account' to fund law enforcement training and reimburse costs for wrongfully impounded vehicles.

SCOPE

Added new sales tax exemptions for purchases made by qualifying data centers and energy storage manufacturing facilities.

Added sales tax exemptions for machinery and equipment used in the operation of qualifying data centers and energy storage facilities.

Added a new exemption for sales of rail rolling stock manufactured in Utah.

REQUIREMENT

Registration fees for certain vehicle types (like electric and hybrid vehicles) were adjusted with new specific dollar amounts and road usage charges.

TIMELINE

Added new effective dates for several code sections, with most changes taking effect on May 6, 2026, and some on January 1, 2027.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 5, 2026

Lower · Passed

House/ comm rpt/ sent to Rules [House Rules Committee]

lower

Mar 3, 2026

Lower · Passed

House Comm - Recommends Returned to Rules [House Revenue and Taxation Committee]

lower

Jan 26, 2026

Lower · Passed

House Comm - Held [House Revenue and Taxation Committee]

lower

Jan 23, 2026

Committee

House/ to standing committee [House Revenue and Taxation Committee]

lower

Jan 20, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 0 co-sponsors