General, Income Tax, and Uniform School FundsJR4-4-101

	Ongoing	One-time	Total
Net GF/ITF/USF (rev.-exp.)	$53,000,000	$13,696,100	$66,696,100

State GovernmentUCA 36-12-13(2)(c)

Revenues	FY2026	FY2027	FY2028
Income Tax Fund	$0	$53,000,000	$53,000,000
Income Tax Fund, One-time	$(1,300,000)	$15,000,000	$0
Total Revenues	$(1,300,000)	$68,000,000	$53,000,000

Enactment of this legislation could reduce Income Tax Fund revenue by an estimated $1,300,000 in FY 2026, then increase Income Tax Fund revenue by an estimated $68,000,000 in FY 2027, and $53,000,000 in FY 2028, resulting from the lower income tax rate for income under $1 million along with the higher income tax rate for income greater than $1 million.

Expenditures	FY2026	FY2027	FY2028
Income Tax Fund, One-time	$0	$3,900	$0
Total Expenditures	$0	$3,900	$0

Enactment of this legislation could cost the Tax Commission an estimated $3,900 one-time from the Income Tax Fund in FY 2027 to implement changes to the State's tax systems, forms, instructions, training and processes.

	FY2026	FY2027	FY2028
Net All Funds (rev-exp)	$(1,300,000)	$67,996,100	$53,000,000

Local GovernmentUCA 36-12-13(2)(c)

Enactment of this legislation likely will not result in direct, measurable costs for local governments.

Individuals & BusinessesUCA 36-12-13(2)(c)

Enactment of this legislation could reduce income taxes for individuals and businesses with annual income of less than $1 million while increasing income taxes for individuals and businesses with annual income greater than $1 million; the net impact is estimated to decrease total income taxes paid by businesses and individuals, in aggregate, by an estimated $1,300,000 in FY 2026, then increase the total by $68,000,000 in FY 2027, and $53,000,000 in FY 2028, resulting from the lower income tax rate for some and the higher income tax rate for others; individual impacts will vary.

Regulatory ImpactUCA 36-12-13(2)(d)

Enactment of this legislation likely will not change the regulatory burden for Utah residents or businesses.

Performance EvaluationJR1-4-601

This bill does not create a new program or significantly expand an existing program.

Notes on Notes

Fiscal notes estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal note is not an appropriation. The Legislature decides appropriations separately.

2026/02/13 11:06, Lead Analyst Travis Eisenbacher, Attorney: Arthur, A. V.

Fiscal Note