HB 77 Utah House · 2026 General Session

Tax Modifications

HB 77 modifies Utah's tax code to simplify reporting and update rules. It requires mineral producers to file specific tax forms on time or face penalties, adjusts property tax relief rules to allow homeowners to appeal late-filing denials, and clarifies how condominiums are taxed. The bill repeals outdated provisions like the inheritance tax and income tax credit for cleaner fuels, while consolidating multiple tax exemptions into one section. These changes primarily affect mineral producers, property owners seeking tax relief, and local governments managing tax collections.

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Feb 2026

Signed into Law

Mar 2026

Introduced Jan 20, 2026 Signed Mar 23, 2026

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What changed between versions

Amended Excerpts 1/27/2026 11:01:361 → Amended 1/27/2026 11:01:361 · 8 edits

MODERATE

This bill consolidates and updates Utah's tax code to align with federal changes, primarily by expanding reporting requirements for the State Tax Commission regarding federal tax law impacts. It also increases property valuation thresholds for mandatory county reviews, clarifies rules for common areas in condominiums, and updates penalty structures for late filings and information returns. Additionally, it modifies definitions for tax credits, pass-through entity payments, and sales tax exemptions to reflect current economic and legal standards.

Scope change

The bill expands the scope of reporting obligations for the State Tax Commission to include federal tax law changes and broadens the definition of taxable property to include allocated income for unrelated business income tax purposes.

REQUIREMENT

Enhanced reporting requirements mandate the State Tax Commission to annually report on federal tax law changes that could significantly increase state income tax revenue.

Added new provisions requiring producers to file Form 1099s electronically and by specific deadlines, with stricter penalties for non-compliance.

THRESHOLDS

Increased the property valuation threshold for mandatory county reviews from 150% to 350% for non-residential properties to reduce administrative burden on counties.

DEFINITION

Updated the definition of 'indigent individual' to remove county-specific limitations on extreme hardship findings, allowing broader eligibility for property tax relief.

Refined definitions for sales and use tax, including updates for short-term rentals, bundled transactions, and digital goods to ensure accurate tax collection.

ENFORCEMENT

Adjusted penalty amounts and timelines for late filing of information returns and Form 1099s, increasing fines for late submissions and extending the grace period for certain filings.

ELIGIBILITY

Clarified eligibility criteria for low-income housing tax credits and pass-through entity tax payments to align with federal tax definitions and economic conditions.

TECHNICAL

Consolidated various tax statutes and repealed obsolete provisions, such as the inheritance tax and cleaner burning fuel credit, to streamline the tax code.

Introduced → Enrolled · 10 edits · Mar 23, 2026

MAJOR

This bill updates Utah's tax code to align with federal changes, modernize reporting requirements, and clarify tax rules for specific industries and property types. It introduces new penalties for failing to file mineral production tax forms, expands the definition of 'indigent individual' for property tax relief, and adjusts thresholds for property tax assessments and reporting. The legislation also creates new mechanisms for pass-through entities to pay taxes on behalf of their owners and updates definitions for sales tax purposes to include short-term rentals and digital goods.

Scope change

The bill expands the scope of tax liability for pass-through entities by allowing them to pay taxes on behalf of individual owners, broadens the definition of taxable property to include common areas in condominiums and short-term rentals, and extends the applicability of certain tax definitions to digital products and services.

ENFORCEMENT

New penalties were added for producers who fail to file Form 1099 for mineral production tax withholding or file it late, with specific dollar amounts and caps based on how late the filing is.

ELIGIBILITY

The definition of 'indigent individual' for property tax relief was modified to remove the restriction that extreme hardship findings must be made at the county level, allowing the state to determine eligibility.

Eligibility criteria for property tax relief were modified to allow appeals of county denials based on late filing, whereas previously late filing was an absolute bar to relief.

REQUIREMENT

New reporting requirements were added for the State Tax Commission to annually report to the legislature on federal tax law changes that could significantly increase state income tax revenue.

New requirements were added for counties to automatically review property assessments when values increase by 150% or more (350% for non-residential property) and to report specific data to the State Tax Commission.

New requirements were added for pass-through entities to pay or withhold taxes on behalf of their individual owners, with specific rules for calculating the tax amount and providing statements to owners.

Property tax assessment rules were modified to clarify how common areas in condominiums and community associations should be valued and assessed, ensuring equal ownership interests are reflected.

DEFINITION

The definition of 'Utah unrelated business income' was expanded to include allocated income from pass-through entities, and 'short-term rental' was expanded to include rentals of real property.

Definitions for sales and use tax were updated to include new categories such as digital audio works, digital books, and specific types of aircraft maintenance providers.

TIMELINE

New effective dates were added for various provisions, with some changes taking effect on May 6, 2026, and others on January 1, 2026, or July 1, 2026.

Floor votes · Senate Feb 6, 2026 · House Jan 27, 2026

How they voted

27–1

Passed · 1 other

Total votes 29

Feb 6, 2026

D Democratic6

4 Yea 1 Nay 1

66% Yea

N Forward1

1 Yea

100% Yea

R Republican22

22 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 23, 2026

Signed into law

Governor Signed

executive

Feb 6, 2026

Lower · Passed

House/ signed by Speaker/ sent for enrolling

lower

Feb 6, 2026

Lower · Passed

Senate/ signed by President/ returned to House

lower

Feb 6, 2026

Upper · Passed

Senate/ passed 3rd reading

upper

Feb 3, 2026

Upper · Passed

Senate/ committee report favorable [Senate Revenue and Taxation Committee]

upper

Feb 2, 2026

Upper · Passed

Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]

upper

Jan 30, 2026

Committee

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

upper

Jan 28, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

Jan 27, 2026

Upper · Passed

House/ passed 3rd reading

upper

Jan 27, 2026

Introduced

House/ floor amendment

lower

Jan 22, 2026

Lower · Passed

House/ committee report favorable [House Revenue and Taxation Committee]

lower

Jan 21, 2026

Lower · Passed

House Comm - Favorable Recommendation [House Revenue and Taxation Committee]

lower

Jan 20, 2026

Committee

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

lower

Jan 20, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 1 co-sponsor