 | Fiscal Note1st Sub. H.B. 596 (Buff) 2026 General Session Homelessness Amendments - As Amended by Eliason, Steve |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(5,700) | $(4,800) | $(10,500) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Homeless Shelter Cities Mitigation Restricted Account (GFR) | $0 | $5,754,000 | $5,754,000 |
| Homeless Shelter Cities Mitigation Restricted Account (GFR), One-time | $0 | $(5,754,000) | $(4,979,000) |
| Total Revenues | $0 | $0 | $775,000 |
Enactment of this legislation modifies the local sales tax contribution to the Homeless Shelter Cities Mitigation Restricted Account by increasing both the percentage of certain sales tax revenues deducted and the maximum deduction cap. Impacts on state revenues will not begin until CY 2028, as calendar year deductions are calculated using data from the prior fiscal year. It is estimated that this bill will increase state sales tax revenue distributed to the Homeless Shelter Cities Mitigation Restricted Account by approximately $775,000 in FY 2028 and $5,754,000 in FY 2029. Starting in FY 2027, this bill would transfer any cigarette tax revenue exceeding $48.9 million into the Homeless Services Restricted Account. Because cigarette tax revenues for FY 2027 are not projected to exceed this threshold, no revenues are expected to be transferred under current law.
| Expenditures | FY2026 | FY2027 | FY2028 |
| General Fund | $0 | $5,700 | $5,700 |
| General Fund, One-time | $4,800 | $0 | $0 |
| Total Expenditures | $4,800 | $5,700 | $5,700 |
Enactment of this legislation could cost the Tax Commission $3,900 one-time from the General Fund in FY 2026 for system updates and testing. Enactment of this legislation could also cost the Department of Government operations $900 one-time in FY 2026 and $1,900 ongoing beginning in FY 2027 from the General Fund to set up and maintain a new restricted account. Finally, enactment of this legislation could cost the Department of Health and Human Services $3,800 ongoing from the General Fund beginning in FY 2027 to support operations related to homelessness.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $(4,800) | $(5,700) | $769,300 |
Enactment of this legislation modifies the local sales tax contribution to the Homeless Shelter Cities Mitigation Restricted Account by increasing both the percentage of certain sales tax revenues deducted and the maximum deduction cap. Impacts on local distributions will not begin until CY 2028, as calendar year deductions are calculated using data from the prior fiscal year. It is estimated that this bill will reduce sales tax revenue distributed to local governments by approximately $775,000 in FY 2028 and $5,754,000 in FY 2029. While impacts vary by municipality, the maximum estimated annual reduction for a single locality is $241,000.
Enactment of this legislation likely will not result in direct expenditures from tax or fee changes for Utah residents and businesses.
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.