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2026 Utah Legislature on taxes and spending

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A proposed gas tax cut for Utahns at the pump triggered a feud with Idaho when that state’s House Speaker ran a memorial (their version of a resolution) criticizing Utah’s legislature over it. Idaho lawmakers feared the bill, which included a tax on refineries, would have led to higher gas prices for Idahoans. Idaho House Speaker Mike Moyle threatened to cut off water flowing into Utah to the Great Salt Lake in retaliation. Ultimately, the bill only offered a temporary cut on the gas tax for consumers and no refinery tax. Gov. Cox and Republican leaders held a public event to sign agreements with the petroleum industry for refinery production expansion. The governor even posed for photos with a memorandum of understanding to work with Idaho on water issues — something Speaker Moyle then rejected, raising concerns Utah would take Idaho’s water.

Lawmakers ran numerous bills to tweak Utah’s property tax system after hearing from angry constituents who got sticker shock from their communities. But there wasn’t a lot that could be done as it’s a local city and county decision. Still, bills did pass demanding more notification and public input on a proposed property tax hike.

Senate Majority Whip Chris Wilson’s bill to tax streaming services passed. So did Sen. Cal Musselman’s tax on porn site subscriptions with money earmarked for youth mental health.

Sen. Mike McKell passed a bill taxing some big entities that do “targeted advertising” like social media sites, YouTube, etc., if they make over $100 million from it.

Rep. Tiara Auxier proposed a public vote on some tax hikes proposed by local governments, but it did not advance.

Despite seeing cuts to state revenues as a result of President Trump’s “Big Beautiful Bill,” Republican lawmakers still pursued a small income tax cut for the sixth year in a row.

Rep. Tracy Miller’s bill to expand who qualifies for the child tax credit passed easily through the legislative session. Rep. Jason Thompson’s bill to offer some tax credits to small businesses for child care options also passed the legislature.

Senate Minority Leader Luz Escamilla’s bill to expand home-based child care options did not pass. A bill to use a state facility for a child care center as a pilot project failed in the House. 

A bill that would remove the sales tax on eyeglasses and contact lenses by treating them like any other prosthetic device stalled in the Senate.

Rep. Melissa Garff Ballard proposed a bill to eliminate the marriage penalty in income tax. The bill failed in the House.

You can now donate to the state’s school lunch fund for children in need on your tax forms under a bill that passed.

A bill to repeal the restaurant tax on some foods sold in convenience stores did not pass.