Fiscal Note
S.B. 85 1st Sub. (Green)
2025 General Session
Income Tax Rate Amendments
by Fillmore, Lincoln
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $(80,600,000) $78,992,200 $(1,607,800)
State Government UCA 36-12-13(2)(c)
Revenues FY 2025 FY 2026 FY 2027
Income Tax Fund $0 $(80,600,000) $(80,600,000)
Income Tax Fund, One-time $0 $79,000,000 $79,100,000
Total Revenues $0 $(1,600,000) $(1,500,000)
Enactment of this legislation could reduce Income Tax Fund revenue by $1,600,000 one-time in
FY 2026 resulting from changes in the timing of net mineral production tax withholding collections.
Additionally, to the extent that actual state revenue collections exceed the forecasted revenue
amounts as defined, the associated reduction in the income tax rate could result in decreased income
tax collections in subsequent fiscal years; this is estimated to reduce Income Tax Fund revenue
by $1,500,000 in FY 2027, $98,000,000 in FY 2028, and $80,600,000 in FY 2029. Actual revenue
impacts will vary depending on the year and extent to which actual collections exceed thresholds for
each year.
Expenditures FY 2025 FY 2026 FY 2027
Income Tax Fund, One-time $0 $7,800 $0
Total Expenditures $0 $7,800 $0
Enactment of this legislation could result in changes to the State's tax systems, forms, instructions,
training and processes costing $7,800 one-time from the Income Tax Fund in FY 2026 which the Tax
Commission has indicated can be absorbed.
FY 2025 FY 2026 FY 2027
Net All Funds $0 $(1,607,800) $(1,500,000)
Local Government UCA 36-12-13(2)(c)
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
S.B. 85 1st Sub. (Green)
2025/01/28 12:48, Lead Analyst: Travis Eisenbacher, Attorney: Arthur, A. V. Individuals & Businesses UCA 36-12-13(2)(c)
To the extent that actual state revenue collections exceed the forecasted revenue amounts as
defined, the associated reduction in the income tax rate could result in decreased income taxes paid
in subsequent fiscal years; this is estimated to reduce income taxes for individuals and businesses
by approximately $1,500,000 in FY 2027, $98,000,000 in FY 2028, and $80,600,000 in FY 2029 in
aggregate; individual impacts will vary. Actual impacts would vary depending on the year and extent to
which actual collections exceed thresholds for each year.
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.
S.B. 85 1st Sub. (Green)
2025/01/28 12:48, Lead Analyst: Travis Eisenbacher, Attorney: Arthur, A. V.