 | Fiscal NoteH.B. 507 2026 General Session State Coordination of Regional and Local Economic Development Projects Amendments by Roberts, Calvin |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(182,000) | $(173,700) | $(355,700) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Waste Tire Recycling Fund | $0 | $(31,000) | $(31,000) |
| Marda Dillree Corridor Preservation Fund | $0 | $(77,000) | $(77,000) |
| Used Oil Administration (GFR) | $0 | $(5,000) | $(5,000) |
| New Account Created By Bill (FN Only) | $0 | $21,258,000 | $21,258,000 |
| Total Revenues | $0 | $21,145,000 | $21,145,000 |
To the extent that local government funds may be deposited into state accounts, enactment of this legislation could increase administrative fee revenue to the State Reinvestment Restricted Account by $21,258,000 ongoing beginning in FY 2027 from increasing the rate assessed to administer tax collections to 1.5%. Increasing the administrative fee rate could decrease revenues to 1) the Marda Dillree Corridor Preservation Fund by $77,000 ongoing beginning in FY 2027, 2) the Waste Tire Recycling Fund by $31,000 ongoing beginning in FY 2027, and 3) the Used Oil Collection Administration Account by $5,000 ongoing beginning in FY 2027. To the extent that tax differential occurs within a Utah Inland Port Authority project area adopted after July 1, 2026, enactment of this legislation could increase contributions to the State Reinvestment Restricted Account by an unknown amount ongoing beginning in FY 2027 from Utah Inland Port Authority tax increment revenue being contributed; the aggregate amount is unknown. To the extent the increment financing committee authorizes increments for a regionally significant development zone, enactment of this legislation could increase contribution revenue to the State Reinvestment Restricted Account by an unknown amount ongoing beginning in FY 2027 from a regionally significant development zone where the increment financing committee authorized a contribution rate of 5% to 25% of property tax increment received. The aggregate amount of these contributed revenues to the account is unknown. To the extent that bonds are issued by an infrastructure financing district or community reinvestment agency for a regionally significant development zone, enactment of this legislation could result in forgone revenue to the Income Tax Fund to the extent interest on the bonds and income from the bonds would otherwise be taxable, and to the extent investors in these bonds would otherwise have invested in taxable securities. The aggregate impact is unknown and would be dependent on the amount of bonds issued, bond terms, interest rates, when the bonds are bought and sold, and other factors.
| Expenditures | FY2026 | FY2027 | FY2028 |
| State Tax Commission Administrative Charge Account (GFR) | $0 | $106,100 | $106,100 |
| State Tax Commission Administrative Charge Account (GFR), One-time | $19,700 | $23,200 | $0 |
| General Fund | $0 | $182,000 | $182,000 |
| General Fund, One-time | $25,900 | $140,000 | $140,000 |
| Income Tax Fund, One-time | $7,800 | $0 | $0 |
| Total Expenditures | $53,400 | $451,300 | $428,100 |
Enactment of this legislation could cost the Governor's Office of Economic Opportunity $172,300 ongoing from beginning in FY 2027, $25,000 one-time in FY 2026, and $140,000 one-time in FY 2027 and FY 2028 from the General Fund for personnel and support costs. Enactment of this legislation could cost the Tax Commission $106,100 ongoing beginning in FY 2027, $19,700 one-time in FY 2026, and $23,200 one-time in FY 2027 from the State Tax Commission Administrative Charge Account as well as $7,800 one-time in FY 2026 from the Income Tax Fund for personnel services. Enactment of this legislation could cost the Department of Government Operations $1,900 ongoing beginning in FY 2027 and $900 one-time in FY 2026 from the General Fund for account creation and maintenance. Enactment of this legislation could cost the Senate $1,000, the House of Representatives $1,000, and the Office of the Legislative Fiscal Analyst $5,800, all ongoing from the General Fund beginning in FY 2027, for reimbursement of members of increment authorization committees and staff support. The Office of the Legislative Fiscal Analyst can absorb the $5,800 cost.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $(53,400) | $20,693,700 | $20,716,900 |
To the extent that tax differential occurs within a Utah Inland Port Authority project area adopted after July 1, 2026, this bill may result in forgone tax differential revenue of 1% to 5% or a set amount to Utah Inland Port Authority from contributions to the State Reinvestment Restricted Account. To the extent that private entities rely on Utah Inland Port Authority funding or land remediated for development, this bill may result in forgone revenue as a flat amount or percentage of profits paid to the Utah Inland Port Authority from contributions to the State Reinvestment Restricted Account. Enactment of this legislation could decrease tax revenue to local governments by $21,145,000 ongoing beginning in FY 2027 from increasing the rate assessed to administer tax collections to 1.5%. To the extent the increment financing committee authorizes increments for a regionally significant development zone, enactment of this legislation could increase increment revenue from property taxes and sales taxes to a community reinvestment agency managing the zone, while other taxing entities forgo up to 60% of the increment property taxes and an unknown percent of increment sales tax; the aggregate amount of these revenues is unknown. To the extent a county levies an energy sales and use tax, enactment of this legislation could cost a county $1,000 one-time for an ordinance establishing the tax. Subsequently, sales tax revenue to a community redevelopment agency for a regionally significant development zone could increase by 6% of energy sales amounts in the zone; the aggregate amount of these revenues is unknown. To the extent a creating entity proposes a regionally significant development zone, enactment of this legislation could cost a creating entity an unknown amount one-time per zone proposal to analyze the proposal's impact, and if authorized, track and report on revenue collections; the aggregate amount of these costs is unknown. To the extent a creating entity’s regionally significant development zone is authorized, enactment of this legislation could cost a community redevelopment agency an unknown ongoing amount from regionally significant development zone funds for administration, reporting, financing, audit services, development, mitigation, reimbursements, financing district cost, and remittance of tax increment to the State Reinvestment Restricted Account; the aggregate amount of these costs is unknown. Enactment of this legislation could cost a regional economic development authority an unknown ongoing amount for reporting on collections from increment financing; the aggregate amount of these costs is unknown. To the extent that a public infrastructure district is dissolved, revenues and costs could increase to its creating entity as project assets that were developed and maintained are transferred from the public infrastructure district; the aggregate impact of these transfers is unknown.
To the extent a county levies an energy sales and use tax, enactment of this legislation could cost businesses and individuals an additional 6% on their energy bills if they reside in an affected regionally significant development zone. To the extent that bonds are issued by an infrastructure financing district or community reinvestment agency for a regionally significant development zone, and to the extent that investors invest in these bonds, enactment of this legislation exempts bonds issued by the agency from state taxes and could result in investors paying less tax on their investment. The aggregate impact is unknown and would depend on the amount of bonds issued, bond terms, interest rates, when the bonds are bought and sold, and other factors.
Enactment of this legislation could result in a small increase in the regulatory burden for Utah residents or businesses.
This bill does not create a new program or significantly expand an existing program.