 | Fiscal Note1st Sub. H.B. 231 (Buff) 2026 General Session Restaurant Tax Repeal Amendments by Thurston, Norman K |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $0 | $0 | $0 |
| Revenues | FY2026 | FY2027 | FY2028 |
| Total Revenues | $0 | $0 | $0 |
Enactment of this legislation likely will not materially impact state revenue.
| Expenditures | FY2026 | FY2027 | FY2028 |
| State Tax Commission Administrative Charge Account (GFR), One-time | $0 | $15,500 | $0 |
| Total Expenditures | $0 | $15,500 | $0 |
Enactment of this legislation could cost the Tax Commission $15,500 one-time in FY 2027 from the State Tax Commission Administrative Charge Account for programming and system testing.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $0 | $(15,500) | $0 |
Enactment of this legislation repeals a county's authority to impose a restaurant tax once total revenue reaches the amount necessary to secure existing debt obligations. In CY 2025, counties received approximately $92.4 million from this tax. It is unknown when each county will meet the specific revenue thresholds relative to its debt as outlined in this legislation.
Enactment of this legislation would repeal the restaurant tax would once a county meets the specific revenue thresholds relative to its debt. Once the tax is repealed, consumers would no longer be required to pay the additional 1% tax. Based on CY 2025 data, this could result in an aggregate taxpayer savings of up to $92.4 million annually.
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.