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

	Ongoing	One-time	Total
Net GF/ITF/USF (rev.-exp.)	$(88,807,800)	$87,207,800	$(1,600,000)

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

Revenues	FY2026	FY2027	FY2028
Income Tax Fund	$0	$(88,800,000)	$(88,800,000)
Income Tax Fund, One-time	$0	$87,200,000	$87,700,000
Total Revenues	$0	$(1,600,000)	$(1,100,000)

Enactment of this legislation could reduce Income Tax Fund revenue by $1,600,000 in FY 2027 resulting from changes in the timing of net mineral production withholding collections. Additionally, to the extent that actual state revenue collections exceed the forecasted revenue amounts as defined, the associated reduction in the income tax rate could result in decreased income tax collections in subsequent fiscal years; this is estimated to reduce Income Tax Fund revenue by $1,100,000 in FY 2028, $108,200,000 in FY 2029, and $88,800,000 in FY 2030. Actual revenue impacts will vary depending on the year and extent to which actual collections exceed thresholds for each year.

Expenditures	FY2026	FY2027	FY2028
Income Tax Fund	$0	$7,800	$7,800
Income Tax Fund, One-time	$0	$(7,800)	$0
Total Expenditures	$0	$0	$7,800

Enactment of this legislation could cost the Tax Commission an estimated $7,800 ongoing from the Income Tax Fund beginning in FY 2028 to implement changes to the State's tax systems, forms, instructions, training and processes.

	FY2026	FY2027	FY2028
Net All Funds (rev-exp)	$0	$(1,600,000)	$(1,107,800)

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 result in a $1,600,000 timing shift in mineral production withholding for businesses and individuals in FY 2027. To the extent that actual state revenue collections exceed the forecasted revenue amounts as defined, the associated reduction in the income tax rate could result in decreased income taxes paid in subsequent fiscal years; this is estimated to reduce income taxes for individuals and businesses by approximately $1,100,000 in FY 2028, $108,200,000 in FY 2029, and $88,800,000 in FY 2030 in aggregate; individual impacts will vary. Actual impacts would vary depending on the year and extent to which actual collections exceed thresholds for each year.

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.

2026/02/03 12:13, Lead Analyst Travis Eisenbacher, Attorney: Arthur, A. V.

Fiscal Note