Budget & Taxes

HB 507 establishes a State Reinvestment Restricted Account to collect and manage funds from specific economic development activities. It prohibits local governments from offering incentives for large data centers (with exceptions), creates new development zones for housing, transit, and other projects, and requires counties/cities to follow specific rules for zone creation and funding. The bill sets a 2028 deadline for creating certain zones like home ownership promotion areas and coordinates with another economic development bill (H.B. 475). It affects local governments, counties, cities, and the Utah Inland Port Authority by modifying how they manage economic development projects and tax increment funds.

HB 425 restricts how Utah cities and towns can charge certain fees. It bars cities from imposing general fees for broadband internet or public safety services (like police/fire) on the public, with limited exceptions (e.g., fees for bonds issued before 2026 must end by 2027). Similarly, towns cannot charge general fees for public safety services, except for existing fees tied to agreements between towns or volunteer services, which must be renewed every three years. The bill also creates a new process for municipalities to establish transportation utility fees (for services like roads), requiring annual reviews, appeal mechanisms, and local referendums for new fees.

SB 78 modifies Utah's property tax relief programs, effective 2027, primarily affecting renters, homeowners, and elderly property owners. It expands eligibility for a renter's credit and adds a two-year recency requirement for homeowner credits and indigent abatements, while prohibiting multiple forms of relief (with exceptions). Key changes include removing annual inflation adjustments for homeowner credits, extending delinquency periods to 10 years for seniors 70+, and setting a 6% interest rate for seniors 65+. The bill also requires counties to provide clearer information about deferral programs and tax relief options on official notices.

HB 210 modifies Utah's Individual Income Tax Act to reduce tax burdens for certain filers. It removes marriage penalties by setting half the income phaseout limits for single, head of household, and married filing separately filers compared to joint filers, and creates a new nonrefundable tax credit for married filers. The bill directly affects Utah taxpayers with these filing statuses, particularly married couples who file separately. It applies retroactively to prior tax years, requires no new state funding, and amends multiple tax code sections to implement these changes.