Fiscal Note
4th Sub. H.B. 60 (Green)
2025 General Session
State Tax Amendments
by Eliason, Steve
(McCay, Daniel)
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $1,970,000 $(1,800,000) $170,000
State Government UCA 36-12-13(2)(c)
Revenues FY 2025 FY 2026 FY 2027
Income Tax Fund $0 $1,970,000 $1,970,000
Income Tax Fund, One-time $0 $(1,769,000) $(1,100,000)
Other Financing Sources $0 $790,000 $790,000
Other Financing Sources, One-
time
$0 $(731,000) $(450,000)
Total Revenues $0 $260,000 $1,210,000
Enactment of this bill could result in an estimated $60,000 increase in Income Tax Fund revenues
ongoing beginning in FY 2027 due to the creation of a deduction for individuals who have to repay
social security that is subject to income tax and the modification of the circumstances under which an
individual is exempt from individual income tax. To the extent there are carry forward pass-through
entity tax credits that would have expired after the five-year carry forward period that could be utilized
during the extended carry forward period, this bill could result in unknown revenue loss to the Income
Tax Fund beginning in FY 2029. (This tax credit was enacted in tax year 2022, so tax year 2022
credits can currently be carried forward to tax years 2023 through 2027. Under this bill, unused 2022
credits could be carried forward to tax years 2028 through 2032.)
Capping the interest rate on overpayments at $100 per calendar year would increase state tax
revenues. It is estimated that enactment of this bill would increase various state revenues by
approximately $200,000 in FY 2026 and $1.15 million in FY 2027. Approximately 69% of the impacts
would be to the Income Tax Fund with the remainder impacting various other state funds and
accounts.
Expenditures FY 2025 FY 2026 FY 2027
Income Tax Fund, One-time $31,000 $0 $0
Total Expenditures $31,000 $0 $0
Enactment of this legislation could cost the Tax Commission $31,000 one-time in FY 2025 to update
systems and forms to comply with the provisions of the bill. The Tax Commission has indicated that
they can absorb these costs.
4th Sub. H.B. 60 (Green)
2025/02/11 10:48, Lead Analyst: Andrea Wilko, Attorney: Arthur, A. V. FY 2025 FY 2026 FY 2027
Net All Funds $(31,000) $260,000 $1,210,000
Local Government UCA 36-12-13(2)(c)
Enactment of this bill would increase various local revenues collected by the Tax Commission by
approximately $5,000 in FY 2026 and $30,000 in FY 2027.
Individuals & Businesses UCA 36-12-13(2)(c)
Individuals who have to repay social security that is subject to income tax could see a tax reduction
of $15,000 in the aggregate from the creation of a subtraction from income. The modification of the
circumstances under which an individual is exempt from individual income tax could result in an
aggregate net tax increase of $75,000 for a small number of taxpayers. Extending the carry forward
for the tax credit for taxes paid by a pass-through entity from five years to ten years could result in
a reduction in income tax liability for taxpayers that have carry forward tax credits that would have
expired after the five-year carry forward period that they are able to use during the extended carry
forward period.
Capping the interest rate on overpayments at $100 per calendar year would reduce interest payments
for some taxpayers. Around 2,000 taxpayers may not receive refunded interest of approximately
$205,000 in FY 2026 and $1.18 million in FY 2027.
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 explanations 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 explanation is not an appropriation. The
Legislature decides appropriations separately.
4th Sub. H.B. 60 (Green)
2025/02/11 10:48, Lead Analyst: Andrea Wilko, Attorney: Arthur, A. V.