 | Fiscal Note3rd Sub. S.B. 190 (Ivory) 2026 General Session Trailer Registration Amendments by Brammer, Brady |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $0 | $(46,500) | $(46,500) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Transportation Investment Fund of 2005 | $0 | $(1,273,000) | $(1,273,000) |
| Transportation Investment Fund of 2005, One-time | $0 | $2,228,000 | $2,871,000 |
| Transportation Fund | $0 | $(1,469,000) | $(1,469,000) |
| Transportation Fund, One-time | $0 | $2,571,000 | $3,327,000 |
| Rural Transportation Infrastructure Fund | $0 | $(258,000) | $(258,000) |
| Rural Transportation Infrastructure Fund, One-time | $0 | $452,000 | $582,000 |
| Total Revenues | $0 | $2,251,000 | $3,780,000 |
Enactment of this legislation could increase state tax revenues from lifetime registration fees on trailers by approximately $2,251,000 in FY 2027 and $3,780,000 in FY 2028. As lifetime registrations decrease the number of annual registrations over time, it is estimated that this bill could decrease state tax revenues by approximately $3,000,000 ongoing in FY 2035 when the bill is in full effect. Impacts will be to the Rural Transportation Infrastructure Fund, Transportation Investment Fund, and Transportation Fund. To the extent a person falsely declares a trailer is for commercial use, enactment of this legislation could increase civil penalty revenue to the Tax Commission by $500 per lifetime registration violation. The aggregate amount of these civil penalties is unknown.
| Expenditures | FY2026 | FY2027 | FY2028 |
| General Fund, One-time | $0 | $46,500 | $0 |
| Total Expenditures | $0 | $46,500 | $0 |
Enactment of this legislation could cost the Tax Commission $46,500 one-time from the General Fund in FY 2027 for system upgrades.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $0 | $2,204,500 | $3,780,000 |
Enactment of this legislation could increase local government tax revenues from lifetime age-based/uniform fees on eligible trailers by approximately $3,727,000 in FY 2027 and $6,238,000 in FY 2028. As lifetime registrations decrease the number of annual registrations over time, it is estimated that this bill will decrease age-based/uniform fees by approximately $4,969,000 ongoing in FY 2035 when the bill is in full effect.
Enactment of this legislation allows owners of eligible trailers to obtain lifetime registration and pay a one-time uniform fee in lieu of ad valorem tax and forego having to pay future registration and ad valorem fees. Registration fees on eligible trailers under current code are $49.50, and the one-time registration fees in this bill could be $198. Annual uniform fee on eligible property currently averages $82, and the one-time uniform fee in this bill averages $328. Owners who choose to pay the one-time registration and uniform fees will pay more in a single year, but may save money over time if they own eligible property for at least 4 years. Impacts will vary by owner, with only owners who anticipate savings choosing the one-time registration and uniform fees. In total, it is estimated that owners of eligible property will pay approximately $5,978,000 more in FY 2027 and $10,018,000 more in FY 2028; however, they could pay $7,969,000 less ongoing when the bill is in full effect in FY 2035. To the extent a person falsely declares a trailer is for commercial use, enactment of this legislation could cost an individual or business $500 per lifetime registration violation. The aggregate amount of these civil penalties is unknown.
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.