HB 247: Great Salt Lake Related Amendments - Utah

Substitute #5 → Enrolled · 5 edits · Mar 25, 2026

MODERATE

This bill updates Utah's Great Salt Lake legislation to adjust tax rates and revenue distribution based on lake elevation and water rights agreements. It shifts a portion of brine shrimp royalty revenue to the Sovereign Lands Management Account and introduces tiered severance taxes for extraction operators, offering lower rates to those with state water rights or who use non-evaporative methods. The bill also refines reporting requirements and certification deadlines to ensure accurate tax assessments.

Scope change

The bill expands the scope of tax incentives by creating specific exemptions and reduced rates for Great Salt Lake extraction operators who enter voluntary water rights agreements or use specific extraction methods, while simultaneously redirecting revenue streams to support sovereign lands management.

FISCAL

Changed the destination of brine shrimp royalty revenue so that the first $125,000 annually goes to the Sovereign Lands Management Account, with the remainder split between the Species Protection Account and the Sovereign Lands Management Account based on whether total revenue exceeds $800,000.

ELIGIBILITY

Established a tiered severance tax system where operators with state water rights agreements or those using non-evaporative concentration methods pay a lower rate (2.6%) compared to the standard rate (7.8%) for others.

REQUIREMENT

Added mandatory annual certification requirements for extraction operators to report their water rights status, extraction methods, and lake elevation data to determine applicable tax rates.

TIMELINE

Adjusted effective dates for various sections, with most changes taking effect May 6, 2026, while severance tax and brine shrimp royalty provisions apply retroactively to January 1, 2025, and 2026 respectively.

TECHNICAL

Corrected formatting errors in the long title and section headers, and added cosponsors to the bill.

Substitute #4 → Substitute #5 · 6 edits

MODERATE

The bill was revised to clarify that it addresses activities related to the Great Salt Lake rather than just those benefiting it. Key changes include increasing the brine shrimp royalty rate from 3.25 to 3.75 cents starting in 2026, adjusting the timeline for when funds must be spent on Great Salt Lake projects from 2027 to 2026, and removing the requirement for retrospective operation on certain tax sections, meaning those changes will only apply to future years.

Scope change

The bill's description was broadened to cover activities 'related to' the Great Salt Lake instead of only those that 'benefit' it. Additionally, the effective dates for several sections were accelerated to July 1, 2026, and the retrospective application of tax changes was limited to exclude the brine shrimp royalty and sovereign lands account sections.

FISCAL

The brine shrimp royalty rate was increased from 3.25 cents to 3.75 cents per pound for tax years beginning on or after February 1, 2026.

TIMELINE

The deadline for spending deposited funds to benefit the Great Salt Lake was moved forward from July 1, 2027, to July 1, 2026.

The effective date for the brine shrimp royalty section was changed from July 1, 2027, to July 1, 2026.

REQUIREMENT

The requirement for retrospective operation was removed from the brine shrimp royalty and sovereign lands account sections, meaning their new rules apply only to future tax years.

TECHNICAL

The long title was updated to describe the bill as addressing activities 'related to' the Great Salt Lake instead of those that 'benefit' it.

The description of the Species Protection Account in Section 23A-3-214 was updated to clarify that brine shrimp revenue is deposited there only under specific circumstances.

Substitute #3 → Substitute #4 · 6 edits

MODERATE

This bill revision shifts the primary destination for Great Salt Lake brine shrimp royalty revenue from the Species Protection Account to the Sovereign Lands Management Account, aligning funding with state land ownership interests. It also extends the effective date for several key provisions from 2026 to 2027 and adds a new category of funds to the Sovereign Lands Management Account derived from legal settlements regarding sovereign land claims.

Scope change

The bill's scope regarding revenue allocation changed significantly by redirecting funds to a different account, while the scope of applicability for tax rates and reporting timelines was extended by one year.

FISCAL

Changed the destination of brine shrimp royalty revenue from the Species Protection Account to the Sovereign Lands Management Account, and removed the temporary provision that split revenue between the two accounts.

Added a new revenue source to the Sovereign Lands Management Account consisting of money received from judgments, settlements, or compromises related to Great Salt Lake sovereign land claims.

TIMELINE

Extended the effective date for the Species Protection Account and brine shrimp royalty deposit provisions from July 1, 2026, to July 1, 2027.

Modified the expenditure schedule for Great Salt Lake funds in the Sovereign Lands Management Account to begin on July 1, 2027, rather than July 1, 2026.

SCOPE

Updated the General Description to state the bill 'benefits' the Great Salt Lake rather than 'addresses activities that address' it.

TECHNICAL

Corrected formatting errors in the Long Title and removed redundant text regarding the 'Brine Shrimp Royalty Act' in the Species Protection Account section.

Substitute #2 → Substitute #3 · 5 edits

MODERATE

This bill revision shifts the funding strategy for the Great Salt Lake by directing brine shrimp tax revenue to the Species Protection Account for a limited period before moving it to the Sovereign Lands Management Account. It also adjusts severance tax rates for extraction operators based on water rights agreements and lake elevation, while tightening reporting deadlines for tax certifications.

Scope change

The bill's scope expanded to include a temporary shift in revenue allocation and specific tax rate modifications tied to environmental conditions and water rights status.

FISCAL

Brine shrimp tax revenue is now split: the first $125,000 goes to the Sovereign Lands Management Account, the next $400,000 goes to the Species Protection Account between 2026 and 2028, and the remainder goes to the Sovereign Lands Management Account after 2028.

TIMELINE

The effective date for several sections was accelerated from July 1, 2027, to July 1, 2026, and the brine shrimp royalty rate will increase from 3.25 to 3.75 cents starting February 1, 2028.

ELIGIBILITY

Severance tax rates for Great Salt Lake extraction operators are now tiered based on whether they have voluntary water rights agreements and whether they use evaporative concentration processes.

REQUIREMENT

Reporting deadlines were shortened; operators must now certify tax eligibility by December 31 of each year instead of January 15, and the Division of Forestry must provide elevation data to the tax commission by January 15.

TECHNICAL

The bill text was updated to reflect retrospective operation starting January 1, 2025, and corrected the effective dates in the long title and section headers.

Substitute #1 → Substitute #2 · 5 edits

MODERATE

The bill was expanded to include new severance tax provisions for Great Salt Lake extraction operators, creating a tiered tax rate based on water rights agreements and lake elevation levels. It also added a new certification process requiring operators to report their status annually to determine tax liability. The funding structure for the Sovereign Lands Management Account was clarified to include these new tax revenues, while the effective dates for various sections were adjusted to apply retroactively to January 1, 2025, for the new tax sections.

Scope change

The bill's scope expanded to include new sections governing severance taxes on Great Salt Lake extraction and the certification of operator eligibility, whereas the original version focused primarily on funding allocations and the brine shrimp royalty.

FISCAL

Added a new severance tax regime for Great Salt Lake extraction operators with rates ranging from 2.6% to 7.8% depending on water rights agreements and lake elevation conditions.

Updated the Sovereign Lands Management Account to explicitly include revenues from the new Great Salt Lake severance tax.

REQUIREMENT

Introduced a mandatory annual certification process for Great Salt Lake extraction operators to declare their water rights status and extraction activities.

TIMELINE

Changed the effective date for the new tax and certification sections to apply retroactively to January 1, 2025, and set a specific July 1, 2027, start date for the Species Protection and Sovereign Lands account amendments.

DEFINITION

Defined new terms including 'Great Salt Lake extraction operator' and 'incremental revenue' to support the new tax structure.

Introduced → Substitute #1 · 3 edits

MINOR

The bill was amended to add a new Senate sponsor and update the effective date from July 1, 2026, to July 1, 2027. The core policy regarding the diversion of brine shrimp tax revenue to the Sovereign Lands Management Account remains unchanged, though the text for that section was reformatted.

TIMELINE

The bill's effective date was delayed from July 1, 2026, to July 1, 2027.

TECHNICAL

A new Senate sponsor, Scott D. Sandall, was added to the bill header.

The text for Section 2 regarding brine shrimp royalty deposits was reformatted but the policy outcome remains the same.

Great Salt Lake Related Amendments

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