02-12 15:26 1st Sub. (Buff) H.B. 277
Katy Hall proposes the following substitute bill:
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Vehicle Registration Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Katy Hall
Senate Sponsor: Daniel McCay
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LONG TITLE
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General Description:
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This bill allows the cancellation of vehicle registration and the refund of certain taxes and
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fees on a pro rata basis.
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Highlighted Provisions:
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This bill:
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▸ allows the owner of certain vehicles to cancel the registration of the vehicle;
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▸ allows the owner of a vehicle that cancels the registration of the vehicle to receive a
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refund of the registration fees and uniform fees in lieu of ad valorem tax on a pro rata
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basis; and
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▸ makes technical changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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41-1a-209, as last amended by Laws of Utah 2021, Chapter 135
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59-2-405.1 (Effective 01/01/26), as last amended by Laws of Utah 2012, Chapter 397
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 41-1a-209 is amended to read:
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41-1a-209 . Application for registration -- Contents -- Cancellation of registration.
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(1) An owner of a vehicle subject to registration under this part shall apply to the division
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for registration on forms furnished by the division.
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(2) The application for registration shall include:
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(a) the signature of an owner of the vehicle to be registered;
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(b) the name, bona fide residence and mailing address of the owner, or business address
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of the owner if the owner is a firm, association, or corporation;
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(c) a description of the vehicle including the make, model, type of body, the model year
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as specified by the manufacturer, the number of cylinders, and the identification
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number of the vehicle;
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(d) other information required by the division to enable it to determine whether the
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owner is lawfully entitled to register the vehicle; and
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(e) an indication if the applicant is applying for automatic registration renewal as
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described in Section 41-1a-216.
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(3)(a) A vehicle owner may cancel registration of the vehicle electronically in the
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manner prescribed by the division.
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(b) A cancellation of registration described in Subsection (3)(a) does not obviate the
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requirement for registration described in Section 41-1a-201.
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(4)(a) Subject to Subsections (4)(c), (d), and (e), if an owner of a motor vehicle cancels
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the registration of a motor vehicle that is 12,000 pounds or less gross laden weight
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subject to registration under this part, the owner is entitled to a refund of the
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following fees for the portion of the year remaining since the date the fees were due
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for that year:
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(i) fees described in Section 41-1a-1206;
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(ii) fees described in Section 41-1a-1222; and
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(iii) fees described in Section 41-1a-1223.
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(b) The division shall refund the registration fee on a pro rata monthly basis for any
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whole month remaining in the 12-month registration period after the date of the
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cancellation.
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(c) The division may withhold from the refund amount the mailing and administrative
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costs of administering the refund.
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(d) If the costs to administer the refund exceed the amount of the refund, the owner of
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the motor vehicle is not entitled to the refund.
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(e) The following motor vehicles are not eligible for a refund under this Subsection (4):
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(i) a motorcycle;
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(ii) a motor vehicle with a gross laden weight of 12,001 pounds or more;
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(iii) a roadable aircraft;
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(iv) an off-highway vehicle;
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(v) an all-terrain vehicle type I vehicle, all-terrain vehicle type II vehicle, or
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all-terrain vehicle type III vehicle;
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(vi) an off-highway implement of husbandry;
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(vii) a street-legal all-terrain vehicle;
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(viii) a recreational vehicle; or
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(ix) a vintage vehicle.
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Section 2. Section 59-2-405.1 is amended to read:
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59-2-405.1 (Effective 01/01/26). Uniform fee on certain vehicles weighing 12,000
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pounds or less -- Distribution of revenues -- Appeals -- Refunds.
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(1) The property described in Subsection (2) is exempt from ad valorem property taxes
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pursuant to Utah Constitution, Article XIII, Section 2, Subsection (6).
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(2)(a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
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statewide uniform fee in lieu of the ad valorem tax on:
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(i) motor vehicles as defined in Section 41-1a-102 that:
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(A) are required to be registered with the state; and
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(B) weigh 12,000 pounds or less; and
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(ii) state-assessed commercial vehicles required to be registered with the state that
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weigh 12,000 pounds or less.
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(b) The following tangible personal property is exempt from the statewide uniform fee
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imposed by this section:
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(i) aircraft;
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(ii) tangible personal property subject to a uniform fee imposed by:
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(A) Section 59-2-405;
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(B) Section 59-2-405.2; or
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(C) Section 59-2-405.3; and
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(iii) tangible personal property that is exempt from state or county ad valorem
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property taxes under the laws of this state or of the federal government.
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(3)(a) Except as provided in Subsections (3)(b) and (c), beginning on January 1, 1999,
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the uniform fee for purposes of this section is as follows:
92 Age of Vehicle Uniform Fee93
12 or more years $10
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9 or more years but less than 12 years $50
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6 or more years but less than 9 years $80
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3 or more years but less than 6 years $110
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(b) For registrations under Section 41-1a-215.5, the uniform fee for purposes of this
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section is as follows:
100 Age of Vehicle Uniform Fee101
12 or more years $7.75
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9 or more years but less than 12 years $38.50
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6 or more years but less than 9 years $61.50
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3 or more years but less than 6 years $84.75
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Less than 3 years $115.50
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(c) Notwithstanding Subsections (3)(a) and (b), beginning on September 1, 2001, for a
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motor vehicle issued a temporary sports event registration certificate in accordance
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with Section 41-3-306, the uniform fee for purposes of this section is $5 for the event
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period specified on the temporary sports event registration certificate regardless of
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the age of the motor vehicle.
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(4) Notwithstanding Section 59-2-407, property subject to the uniform fee that is brought
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into the state and is required to be registered in Utah shall, as a condition of registration,
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be subject to the uniform fee unless all property taxes or uniform fees imposed by the
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state of origin have been paid for the current calendar year.
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(5)(a) The revenues collected in each county from the uniform fee shall be distributed by
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the county to each taxing entity in which the property described in Subsection (2) is
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located in the same proportion in which revenue collected from ad valorem real
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property tax is distributed.
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(b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in
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the same proportion in which revenue collected from ad valorem real property tax is
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distributed.
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(6)(a) If the owner of a vehicle subject to the uniform fee in lieu of the ad valorem tax
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described in this section cancels the registration of the vehicle and is eligible for a
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refund of fees as described in Section 41-1a-209, the owner is entitled to a refund of
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the uniform fee in lieu of the ad valorem tax paid under this section for the portion of
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the year remaining since the date the uniform fee in lieu of the ad valorem tax was
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paid.
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(b) The division shall refund the uniform fee in lieu of the ad valorem tax on a pro rata
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monthly basis for any whole month remaining in the 12-month registration period
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after the date of the cancellation.
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(c) The commission may withhold from the refund amount the mailing and
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administrative costs of administering the refund.
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(d) If the costs to administer the refund exceed the amount of the refund, the owner of
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the vehicle is not entitled to the refund.
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Section 3. Effective Date.
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This bill takes effect on January 1, 2026.
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