 | Fiscal NoteH.B. 107 2026 General Session Vehicle Sales Tax Amendments by Teuscher, Jordan D. |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(23,788,000) | $1,843,800 | $(21,944,200) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Transportation Investment Fund of 2005 | $0 | $(9,436,000) | $(9,436,000) |
| Transportation Investment Fund of 2005, One-time | $0 | $793,000 | $0 |
| Restricted Accounts (FN Only) | $0 | $(2,464,000) | $(2,464,000) |
| Restricted Accounts (FN Only), One-time | $0 | $207,000 | $0 |
| General Fund | $0 | $(23,000,000) | $(23,000,000) |
| General Fund, One-time | $0 | $1,900,000 | $0 |
| Total Revenues | $0 | $(32,000,000) | $(34,900,000) |
Enactment of this legislation would exempt the sales price of the lower priced motor vehicle from sales tax when a person replaces a motor vehicle through separate transactions. The creation of this sales tax exemption is estimated to reduce state sales tax revenue to the General Fund by approximately $21.1 million in FY 2027 and $23.0 million annually thereafter and reduce aggregate state sales tax earmarks by approximately $10.9 million in FY 2027 and $11.9 million annually thereafter.
| Expenditures | FY2026 | FY2027 | FY2028 |
| State Tax Commission Administrative Charge Account (GFR) | $0 | $337,800 | $337,800 |
| State Tax Commission Administrative Charge Account (GFR), One-time | $24,100 | $0 | $0 |
| General Fund | $0 | $788,000 | $788,000 |
| General Fund, One-time | $56,200 | $0 | $0 |
| Total Expenditures | $80,300 | $1,125,800 | $1,125,800 |
Enactment of this legislation could cost the Tax Commission $788,000 ongoing from the General Fund beginning in FY 2027 and $337,800 ongoing from the State Tax Commission Administrative Charge Account beginning in FY 2027 to implement the bill's provisions. Enactment of this legislation could also cost the Tax Commission $56,200 one-time from the General Fund in FY 2026 and $24,100 one-time from the State Tax Commission Administrative Charge Account to update tax systems.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $(80,300) | $(33,125,800) | $(36,025,800) |
Enactment of this legislation would exempt the sales price of the lower priced motor vehicle from sales tax when a person replaces a motor vehicle through separate transactions. The creation of this sales tax exemption is estimated to reduce local sales tax revenues, in aggregate, by approximately $16.8 million in FY 2027 and $18.4 million annually thereafter.
Enactment of this legislation could reduce sales tax liability for businesses and individuals, in aggregate, by an estimated $48.8 million in FY 2027 and $53.3 million annually thereafter as a result of exemptions for motor vehicles replaced through separate transactions; actual individual impacts will vary.
Enactment of this legislation likely will not change the regulatory burden for Utah residents or businesses.
This bill does not create a new program or significantly expand an existing program.