 | Fiscal NoteS.B. 309 2026 General Session Single-family Home Rental Modifications by Johnson, John D. |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(322,300) | $(609,300) | $(931,600) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Commerce Service Account | $0 | $153,800 | $153,800 |
| Commerce Service Account, One-time | $0 | $102,700 | $0 |
| New Account Created By Bill (FN Only) | $0 | $37,846,200 | $37,846,200 |
| New Account Created By Bill (FN Only), One-time | $6,300,000 | $(102,700) | $0 |
| Total Revenues | $6,300,000 | $38,000,000 | $38,000,000 |
Enactment of this legislation could increase revenue to the Housing Transition Redevelopment Fund by $38,000,000 ongoing beginning in FY 2027, and $6,300,000 one-time in FY 2026 due to the new tax imposed on property owners. About $153,800 ongoing beginning in FY 2027 and $102,700 one-time in FY 2027 could be transferred to the Commerce Service Account to cover the Division of Real Estate's cost in administering the registration system.
| Expenditures | FY2026 | FY2027 | FY2028 |
| Commerce Service Account | $0 | $153,800 | $153,800 |
| Commerce Service Account, One-time | $0 | $102,700 | $0 |
| General Fund | $0 | $322,300 | $322,300 |
| General Fund, One-time | $19,300 | $590,000 | $0 |
| New Account Created By Bill (FN Only) | $0 | $38,000,000 | $38,000,000 |
| Total Expenditures | $19,300 | $39,168,800 | $38,476,100 |
Enactment of this legislation could cost the Division of Finance $1,900 ongoing from the General Fund beginning in FY2027 and $900 one-time from the General Fund in FY 2026 to create a new fund for the new tax to be deposited into. This legislation could also cost the Tax Commission $215,400 ongoing from the General Fund beginning in FY 2027, $18,400 one-time from the General Fund in FY 2026, and $590,000 one-time in FY 2027 for staff support and system updates to account for the new tax and to update data on housing units. Additionally, enactment of this legislation could cost the Department of Commerce $153,800 ongoing from the Commerce Service Account beginning in FY 2027 and $102,700 one-time from the Commerce Service Account in FY 2027 for staff support and system updates to monitor the new rental registration system. Enactment of this legislation could cost the Governor's Office of Economic Opportunity (GOEO) $38,000,000 ongoing from the newly created Housing Transition Redevelopment Fund beginning in FY 2027 as pass-through grants due to the new grant program created in this bill. Additionally, this legislation could increase costs to GOEO by $105,000 ongoing from the General Fund beginning in FY 2027 to manage the new grant program.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $6,280,700 | $(1,168,800) | $(476,100) |
Enactment of this legislation could cost local governments $27,000 ongoing beginning in FY 2027 for implementation of the new required reporting to the county assessors.
Enactment of this legislation could require property owners with 25 or more single-family units to pay a per-unit tax of between $2,000 and $6,000. This tax is estimated to generate around $75 million in additional revenue to the newly created Housing Transition Redevelopment Fund. Additionally, enactment of this legislation could cause property owners who fail to register their property to pay a $100 penalty per month that their property remains unregistered, though the aggregate amount is unknown.
Enactment of this legislation could result in a large increase in the regulatory burden for Utah residents or businesses.
This bill creates a new program or significantly expands an existing program.
For a list of questions lawmakers might ask to improve accountability for the proposed
program, please see:
https://budget.utah.gov/newprogram