As Week 6 of the Utah Legislative Session wraps up, business-related policy and budget discussions continue to take center stage. Lawmakers are responding to updated revenue projections showing stronger-than-expected growth, which will shape final budget negotiations of the state’s roughly $30 billion budget. This week also marked a significant milestone, with the Legislature surpassing 1,000 numbered and introduced bills, underscoring the intensity of policymaking as adjournment approaches.
IMPORTANT UPDATE ON H.B. 587, Income Tax Amendments: We want to thank our members, as well as Chamber Coalition representatives from across the state, for their engagement and partnership as we shared concerns with legislators about H.B. 587. We also appreciate the sponsor’s willingness to engage in constructive dialogue and carefully consider feedback from Utah’s business community. As a result of those conversations, the R&E decoupling language was removed in the 2nd substitute of the bill, preserving Utah’s alignment with federal R&E expensing policy. We are grateful for the collaborative approach and the unified voice of chambers statewide in helping ensure Utah’s tax environment remains competitive and supportive of innovation.
With one week remaining in this session, bill movement has reached its fastest pace, and we continue closely monitoring legislation as proposals advance through final committee hearings and floor votes.
The Chamber remains actively engaged by meeting with bill sponsors, testifying in support of measures that strengthen Utah’s business climate and carefully evaluating proposals that may present concerns for employers across the state. As decisions move quickly in these final days, we will continue advocating for policies that support economic competitiveness and long-term growth for Utah’s business community.
Noteworthy Bills to Watch
“Surprise, surprise, folks.”
Senate Budget Chair Jerry Stevenson on the improved outlook for Utah revenue estimates
Legislative fiscal analysts announced updated revenue projections showing an additional $88 million in ongoing revenue and $125 million in one-time revenue for the coming fiscal year, reflecting continued economic growth.
While Senate Budget Chair Jerry Stevenson indicated the improved outlook will soften previously anticipated budget reductions, lawmakers still expect to adopt some agency cuts identified during the session’s efficiency review.
At the same time, Republican leaders remain committed to another income tax rate reduction, with proposed legislation lowering the rate from 4.5% to 4.45%. This would come at a cost of roughly $101 million ongoing, even as lawmakers have enacted significant tax cuts in recent years and absorbed revenue impacts from federal tax changes.
Democratic leaders welcomed the stronger revenue numbers but urged caution on additional income tax cuts, encouraging focus on fiscal stability and core services as the Executive Appropriations Committee finalizes what is expected to be a budget exceeding $30 billion.
RELATED NEWS:
H.B. 575, Fuel Tax and Supply Amendments, sponsored by Rep. Calvin Roberts
STATUS:
- Passed the House and has been sent to the Senate for consideration.
OVERVIEW:
- The agreement also includes a tentative coordination with Idaho on Bear River water management, though it does not create new water rights.
- State leaders announced a partnership with the petroleum industry aimed at increasing fuel supply, lowering gas prices and resolving recent tensions with Idaho over a proposed fuel export tax.
- Instead of taxing exports, lawmakers are advancing H.B. 575 to reduce Utah’s gas tax by 15%, increase refinery production by 23,500 barrels per day over five years, expand fuel storage capacity and streamline pipeline development to boost supply.
RELATED NEWS:
H.B. 475 S3, Development Planning and Coordination Amendments, sponsored by Rep. Calvin Roberts
STATUS:
- Passed the House. Received a favorable recommendation from the Senate Economic Development and Workforce Services Committee and is now to be considered by the full Senate.
OVERVIEW:
- The bill restructures and clarifies the state’s economic development governance framework and renames the Governor’s Office of Economic Opportunity back to the Governor’s Office of Economic Development (GOED).
- The bill creates a new Economic Development Council and outlines its duties, including establishing strategic economic development objectives for the state and providing recommendations to the executive director.
- The Council consists of the following voting members:
- The Governor (or designee), serving as chair
- The President of the Senate (or designee)
- The Speaker of the House of Representatives (or designee)
- One member appointed by the Utah Inland Port Authority board
- One member appointed by the Point of the Mountain State Land Authority board
- One member appointed by the Utah Fairpark Area Investment and Restoration District board
- One member appointed by the Military Installation Development Authority board
- The director of the School and Institutional Trust Lands Administration (or designee)
- One member representing municipalities, appointed by the Utah League of Cities and Towns
- One member representing counties, appointed by the Utah Association of Counties
- This bill matters to the business community because it reshapes who sets Utah’s economic development strategy and how major growth decisions are coordinated across state entities. The structure and membership of the Council will influence priorities around incentives, land use, infrastructure alignment and competitiveness.
H.B. 236 S1, Truth in Taxation Amendments, sponsored by Rep. Karen Peterson
STATUS:
- Passed the House. Received a favorable recommendation from the Senate Revenue and Taxation Committee and is circled on the Senate 2nd Reading Calendar.
OVERVIEW:
- This bill strengthens Utah’s truth-in-taxation process by requiring taxing entities considering exceeding the certified tax rate to make an early public statement outlining the potential increase, its purpose and the estimated impact.
- It would also require taxing entities intending to raise a certified tax rate to create two budgets for the upcoming fiscal year by June 30. One budget would include the tax revenue that would result from the increase, while the other budget would not.
- The Utah Chamber supports this bill because it requires early public disclosure, a certified-rate-based tentative budget and a clearly defined alternative budget before any increase is approved. These amendments will strengthen transparency and predictability around property tax increases.