 | Fiscal NoteH.B. 505 2026 General Session Vehicle Tax and Fee Amendments by Thurston, Norman K |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(1,900) | $(900) | $(2,800) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Transportation Investment Fund of 2005 | $0 | $10,777,500 | $10,777,500 |
| Transportation Investment Fund of 2005, One-time | $0 | $(5,388,700) | $0 |
| Transportation Fund | $0 | $(90,425,000) | $(90,425,000) |
| Transportation Fund, One-time | $0 | $45,212,500 | $0 |
| Dept. of Public Safety Rest. Acct. | $0 | $(3,015,500) | $(3,015,500) |
| Dept. of Public Safety Rest. Acct., One-time | $0 | $1,507,700 | $0 |
| Motor Vehicle Safety Impact Restricted Account | $0 | $(798,700) | $(798,700) |
| Motor Vehicle Safety Impact Restricted Account, One-time | $0 | $(399,300) | $0 |
| New Account Created By Bill (FN Only) | $0 | $32,025,000 | $32,025,000 |
| New Account Created By Bill (FN Only), One-time | $0 | $(16,012,500) | $0 |
| Brain and Spinal Cord Injury Fund | $0 | $(39,100) | $(39,100) |
| Brain and Spinal Cord Injury Fund, One-time | $0 | $19,600 | $0 |
| License Plate Restricted Account (GFR) | $0 | $1,597,400 | $1,597,400 |
| License Plate Restricted Account (GFR), One-time | $0 | $(798,700) | $0 |
| Rural Transportation Infrastructure Fund | $0 | $(1,467,200) | $(1,467,200) |
| Rural Transportation Infrastructure Fund, One-time | $0 | $733,600 | $0 |
| Total Revenues | $0 | $(26,471,400) | $(51,345,600) |
Enactment of this legislation could reduce state revenues to the Transportation fund by $90.4M and other restricted revenue by $5.3M ongoing beginning in fiscal year 2028 due to decreased vehicle registration collections. Enactment could also increase revenue to the newly created Motor Vehicle Restricted Account by $32M, the Transportation Investment of 2005 by $10.8M, and the License Plate Restricted Account by $1.6M ongoing beginning in fiscal year 2028 due to the new fee and tax structure. Due to delayed implementation, the impact in fiscal year 2027 would be approximately half of the ongoing total for each fund.
| Expenditures | FY2026 | FY2027 | FY2028 |
| General Fund | $0 | $1,900 | $1,900 |
| General Fund, One-time | $900 | $0 | $0 |
| Total Expenditures | $900 | $1,900 | $1,900 |
Enactment of this legislation could increase General Fund expenditures by $900 one-time in FY 2026 and $1,900 ongoing beginning in FY 2027 for the Department of Government Operations to create and maintain the Motor Vehicle Division Restricted Account.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $(900) | $(26,473,300) | $(51,347,500) |
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
Enactment of this legislation could reduce registration fees paid by businesses and individuals by $46 million one-time in FY 2027 and $92.2 million ongoing beginning in fiscal year 2028 due to decreased fee amounts.
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.