State Tax Day - Current, S.9, Utah—Multiple Taxes: Enacted Legislation Modifies Various Tax Provisions, Including Extending the Pass-Through Entity Tax, Adjusting Penalties, Modifying Tax Relief and Valuation Processes, Aligning Tax Credit With Federal Law, and Expanding Short-Term Rental Definition, (Mar 25, 2026)

Enacted Utah legislation modifies various tax corporate income, personal income, sales and use, and property tax provisions, including the following:

• consolidates certain State Tax Commission reports in relation to federal tax law changes;

• provides penalty provisions that apply if a producer fails to file a Form 1099 for mineral production tax withholding or fails to file the Form 1099 on time;

• modifies filing requirements applicable to producers for mineral production tax withholding;

• clarifies property tax assessment requirements for the common areas of a condominium or community association;

• increases property valuation thresholds for which county reporting to the State Tax Commission and the Revenue and Taxation Interim Committee is required;

• modifies the definition of "indigent individual," as applied to property tax relief, by removing language that limits a finding of extreme hardship by counties;

• allows a taxpayer to appeal a county's denial of the taxpayer's application for property tax relief on the basis of late filing;

• consolidates a list of all privilege tax exemptions within the privilege tax statute;

• consolidates certain income tax credit review requirements applicable to the Utah low-income housing tax credit;

• expands the definition of "Utah unrelated business income," as applied to corporate income tax, to include allocated income;

• modifies the taxpayer income tax credit definition of "state or local income tax" to align with federal tax changes;

• removes the expiration date on provisions allowing for pass-through entities to pay taxes on behalf of individuals;

• expands the sales and use tax definition of "short-term" rental to include the transfer of possession or control of real property, tangible personal property, or a product transferred electronically for consideration and less than 30 consecutive days;

• increases the weight-based motor vehicle exemption for the motor vehicle rental tax;

• modifies the motor vehicle exemptions for the tourism, recreation, cultural, convention, and airport facilities tax to match the exemptions for the motor vehicle rental tax;

• requires a taxing entity to provide notice of the reauthorization of certain local option sales taxes to the State Tax Commission within a certain period before the reauthorization takes effect;

• prohibits the State Tax Commission from enforcing a reauthorized local option sales tax unless the taxing entity provides timely notice of the reauthorization; and

• repeals obsolete tax provisions, including the income tax credit for items using cleaner burning fuels and the inheritance tax.

Ch. 299 (H.B. 77), Laws 2026, effective May 6, 2026. except as noted in the legislation