H.B. 54 2nd Sub. (Gray)
2023/03/01 14:57, Lead Analyst: Andrea Wilko Attorney: AVA
Fiscal Note
H.B. 54 2nd Sub. (Gray)
2023 General Session
Tax Revisions
by Eliason, S. (McCay, Daniel.)
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $(561,800,000) $79,730,000 $(482,070,000)
State Government UCA 36-12-13(2)(c)
Revenues FY 2023 FY 2024 FY 2025
General Fund $0 $(165,000,000) $(165,000,000)
General Fund, One-time $0 $165,000,000 $99,000,000
Income Tax Fund $0 $(396,800,000) $(396,800,000)
Income Tax Fund, One-time $(6,670,000) $(78,600,000) $0
Transportation Investment Fund
of 2005
$0 $0 $(17,000,000)
Restricted Accounts (FN Only) $0 $0 $(800,000)
Total Revenues $(6,670,000) $(475,400,000) $(480,600,000)
Enactment of this bill may reduce Income Tax Fund revenues by an estimated $6,670,000 in FY 2023;
$475,400,000 in FY 2024; and $396,800,000 in FY 2025.
Should this bill be enacted and if the amendment to the Utah Constitution proposed by S.J.R. 10
passes the Legislature and is approved by a majority of those voting on it at the next regular general
election, then the state sales tax rate of 1.75% on food and food ingredients would be removed
beginning January 1, 2025. Should both conditions be met, it is estimated that this change would
reduce state sales tax revenue by approximately $83.8 million in FY 2025 and $211.1 million ongoing
beginning in FY 2026. Decreases in sales tax revenues due to this change would impact the General
Fund and earmarks to the Transportation Investment Fund and the Outdoor Adventure Infrastructure
Restricted Account.
Expenditures FY 2023 FY 2024 FY 2025
Total Expenditures $0 $0 $0
Enactment of this legislation likely will not materially impact state expenditures.
FY 2023 FY 2024 FY 2025
Net All Funds $(6,670,000) $(475,400,000) $(480,600,000) H.B. 54 2nd Sub. (Gray)
2023/03/01 14:57, Lead Analyst: Andrea Wilko Attorney: AVA
Local Government UCA 36-12-13(2)(c)
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
Individuals & Businesses UCA 36-12-13(2)(c)
This bill will reduce income taxes for individuals and businesses by an estimated $6,670,000 in FY
2023, $475,400,000 in FY 2024, and $396,800,000 in FY 2025 in aggregate. Taxpayer impacts will
vary based on each taxpayer''s individual circumstances.
Should this bill be enacted and if the amendment to the Utah Constitution proposed by S.J.R. 10
passes the Legislature and is approved by a majority of those voting on it at the next regular general
election, then the state sales tax rate of 1.75% on food and food ingredients would be removed
beginning January 1, 2025. Under this change, a household that spends $6,000 annually on food/
food ingredients would see tax savings of approximately $105 per year. In total, it is estimated that this
change would decrease sales tax liability for taxpayers by approximately $83.8 million in FY 2025 and
$211.1 million in FY 2026. Impacts would vary by household depending on the amount of expenditures
on food and food ingredients.
Regulatory Impact UCA 36-12-13(2)(d)
Enactment of this legislation likely will not change the regulatory burden for Utah residents or
businesses.
Performance Evaluation JR1-4-601
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.