HB 505 Utah House · 2026 General Session

Vehicle Tax and Fee Amendments

HB 505 reorganizes Utah's vehicle tax and fee structure, affecting all vehicle owners in the state by changing how registration fees and taxes are classified and collected. Key provisions include redesignating service, regulatory, and vehicle taxes; creating a new restricted account for Motor Vehicle Division funding; and eliminating six-month vehicle registration options. The bill also reorganizes related code sections and appropriates $9.88 million in capital project funds from the General Fund for fiscal year 2027. These changes streamline administrative processes but do not introduce new taxes or fees.

Bill status introduced 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 5, 2026 Last action Mar 7, 2026

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Introduced → Substitute #1 · 8 edits

MODERATE

This bill reorganizes Utah's vehicle tax and fee structure by reclassifying certain charges as service fees, regulatory fees, or vehicle taxes. It creates new restricted accounts for specific fees, removes the option for six-month vehicle registrations, and adjusts fee amounts for 24-month registrations. The changes aim to clarify how vehicle-related revenues are collected and distributed across state funds.

Scope change

The bill applies to all vehicle registrations in Utah but specifically targets commercial vehicles, motorcycles, off-highway vehicles, and novel vehicles for certain fee adjustments and exemptions.

REQUIREMENT

Eliminated the option for six-month vehicle registrations, requiring all vehicles to register for either 12 or 24 months.

Doubled the fee amounts for vehicles registered for 24-month periods compared to 12-month registrations.

FISCAL

Created a new Motor Vehicle Division Restricted Account to receive deposits from vehicle regulatory fees.

Changed the distribution of vehicle weight tax revenues, with 65% now going to the Transportation Investment Fund of 2005 instead of the Transportation Fund.

Established a License Plate Restricted Account to fund license plate issuance and personalized plate design costs.

DEFINITION

Reclassified certain vehicle charges as service fees, regulatory fees, or vehicle taxes for clearer categorization.

ELIGIBILITY

Adjusted property tax fee exemptions and uniform fee amounts for vehicles registered for 24-month periods.

TECHNICAL

Made technical corrections to code sections related to emergency procedures for fee collection and registration requirements.

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Full legislative history

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Committee

Feb 5, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 0 co-sponsors