 | Fiscal Note1st Sub. H.B. 575 (Buff) 2026 General Session Fuel Tax and Supply Amendments by Roberts, Calvin |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(16,300) | $(11,907,800) | $(11,924,100) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Transportation Investment Fund of 2005, One-time | $0 | $14,000,000 | $0 |
| Transportation Fund, One-time | $0 | $(39,679,700) | $0 |
| Off-highway Vehicle (GFR), One-time | $0 | $(200,000) | $0 |
| Boating (GFR), One-time | $0 | $(200,000) | $0 |
| Transit Transportation Investment Fund, One-time | $0 | $(14,000,000) | $0 |
| Total Revenues | $0 | $(40,079,700) | $0 |
Enactment of this legislation could decrease revenue to the Transportation Fund by $39,679,700 one-time in FY 2027 due to the decreased motor fuel tax rate. It could decrease revenue to the restricted Off-Highway Vehicle account and Boat Fuel account by $200,000 each one-time in FY 2027. The bill would also result in a shift of $14 million in sales tax deposits from the Transit Transportation Investment Fund to the Transportation Investment Fund of 2005 one-time in FY 2027. Enactment of this legislation expands the high-cost infrastructure development tax credit by modifying the definition of 'energy delivery project' to include development of a pipeline and related infrastructure for transmission of refined hydrocarbons for storage in a solution-mined subsurface salt cavern. The expanded credit could forgo future Income Tax Fund or General Fund revenue of up to $5 million for every $10 million spent on infrastructure construction for these specific projects. To the extent that more people are convicted as a result of this legislation and pay their financial obligation, this could increase state revenue per case in the following amounts: (1) General Fund $1,070; (2) Court Security $53.
| Expenditures | FY2026 | FY2027 | FY2028 |
| General Fund | $0 | $16,300 | $16,300 |
| General Fund, One-time | $0 | $11,907,800 | $0 |
| Total Expenditures | $0 | $11,924,100 | $16,300 |
Enactment of this legislation could decrease the Department of Transportation's expenditures for the B & C Roads program from the Transportation Fund by $11,903,900 one-time in FY 2027 and increase expenditures by $11,903,900 one-time from the General Fund in FY 2027, making this net neutral. Enactment of this legislation could also increase the Department of Natural Resources expenditures from the General Fund by $16,300 ongoing beginning in FY 2027 to compile all refinery data. DNR has indicated it can absorb these costs. This bill could cost the Tax Commission's $3,900 one-time from the General Fund in FY 2027 for system updates. To the extent that a case is filed in district court as a result of the charges in this legislation, enactment of this legislation could cost the Courts $420 from the General Fund per case.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $0 | $(52,003,800) | $(16,300) |
Enactment of this legislation could decrease the B & C Road allocation to local governments by $11,903,900 one-time in FY 2027 from decreased fuel tax revenue and increase the B & C Road allocation to local governments by $11,903,900 one-time in FY 2027 from the General Fund, making this revenue neutral. Enactment of this legislation could increase revenue to local governments by about $380 per case for fines/fees. Local government entities could experience the following estimated expenditures: 1. Prosecutors - $1,160 per case; 2. Public Defense - $2,250 per case; 3. County Jails - unknown increase at about $83 per day per offender in incarceration costs; 4. Local Justice Court - unknown increase.
Enactment of this legislation could decrease gas taxes paid by businesses and individuals by $39,679,700 in aggregate one-time in FY 2027 due to the decreased motor fuel tax rate. To the extent that individuals violate provisions of this legislation, this could cost certain offenders about $1,500 per case, however the total amount is unknown.
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.