 | Fiscal Note2nd Sub. H.B. 337 (Gray) 2026 General Session Nicotine Product Tax Amendments by Clancy, Tyler |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $39,196,000 | $2,726,700 | $41,922,700 |
| Revenues | FY2026 | FY2027 | FY2028 |
| Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account (GFR) | $0 | $11,300,000 | $11,300,000 |
| Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account (GFR), One-time | $0 | $(3,275,000) | $0 |
| General Fund | $0 | $39,200,000 | $39,200,000 |
| General Fund, One-time | $0 | $2,750,000 | $0 |
| Total Revenues | $0 | $49,975,000 | $50,500,000 |
Enactment of this legislation is estimated to increase revenues to the General Fund by $41,950,000 in FY 2027 and $39,200,000 in FY 2028. It is also estimated to increase revenues to the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account by $8,025,000 in FY 2027 and $11,300,000 in FY 2028.
| Expenditures | FY2026 | FY2027 | FY2028 |
| Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account (GFR) | $0 | $2,000,000 | $2,000,000 |
| General Fund | $0 | $4,000 | $4,000 |
| General Fund, One-time | $15,500 | $7,800 | $0 |
| Total Expenditures | $15,500 | $2,011,800 | $2,004,000 |
Enactment of this legislation could cost the Tax Commission $15,500 one-time in FY 2026 and $7,800 one-time in FY 2027 from the General Fund for system development and testing. Enactment of this legislation could also increase expenditures for the Department of Public Safety by $2.0 million ongoing beginning in FY 2027 from the Electronic Cigarette Substance and Nicotine Proceeds Restricted Account to fund additional law enforcement positions and $4,000 ongoing in FY 2027 from the General Fund for staff support to implement the provisions of the bill.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $(15,500) | $47,963,200 | $48,496,000 |
Enactment could result in $2 million of ongoing revenue beginning in FY 2027 to the law enforcement agency of a city that is the seat of government for a county of the first class.
Enactment of this legislation could increase taxes paid by individuals on certain tobacco products (cigarettes, little cigars, alternative nicotine products, and moist snuff) by $49,975,000 in FY 2027 and $50,500,000 in FY 2028.
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.