Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 216 (2025GS)

Sponsor

Rep. Thurston, Norman K  (Thurston’s own bill)

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• requires the State Tax Commission, the Office of the Legislative Fiscal Analyst, and the Governor's Office of Planning and Budget to annually determine by consensus whether federal tax law changes will likely result in a material increase in state income tax revenue;
• requires the State Tax Commission to submit a report to the Revenue and Taxation Interim Committee if a determination is made by consensus that federal tax law changes will likely result in a material increase in state income tax revenue;
• authorizes the Revenue and Taxation Interim Committee, upon receiving a report, to recommend legislative action for the next general session to negate the material increase in state income tax revenue;
• requires the State Tax Commission to submit a report to the Division of Finance following the general session if a determination is made by consensus that a material increase in state income tax revenue is still expected;
• creates the Income Tax Surplus Restricted Account (account);
• specifies purposes for which revenue deposited into the account may be used; and
• requires the Division of Finance, upon receiving a report, to deposit the estimated amount of the material increase in state income tax revenue into the account.

Every vote on this bill

Bill text

9
59-1-103
59-1-214
0
Income Tax Revenue Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Norman K Thurston
Senate Sponsor: Daniel McCay
LONG TITLE
General Description:
This bill modifies provisions relating to state income tax revenue.
Highlighted Provisions:
This bill:
defines terms;
requires the State Tax Commission, the Office of the Legislative Fiscal Analyst, and the 
Governor's Office of Planning and Budget to annually determine by consensus whether 
federal tax law changes will likely result in a material increase in state income tax 
revenue;
requires the State Tax Commission to submit a report to the Revenue and Taxation 
Interim Committee if a determination is made by consensus that federal tax law changes 
will likely result in a material increase in state income tax revenue;
authorizes the Revenue and Taxation Interim Committee, upon receiving a report, to 
recommend legislative action for the next general session to negate the material increase 
in state income tax revenue;
requires the State Tax Commission to submit a report to the Division of Finance 
following the general session if a determination is made by consensus that a material 
increase in state income tax revenue is still expected;
creates the Income Tax Surplus Restricted Account (account);
specifies purposes for which revenue deposited into the account may be used; and
requires the Division of Finance, upon receiving a report, to deposit the estimated amount 
of the material increase in state income tax revenue into the account.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
ENACTS:
59-1-103
, Utah Code Annotated 1953
59-1-214
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
59-1-103
 is enacted to read:
59-1-103
. Income Tax Surplus Restricted Account.
(1)
As used in this section:
(a)
"Account" means the Income Tax Surplus Restricted Account created in Subsection 
(2)
.
(b)
"Material increase in state income tax revenue" means the same as that term is 
defined in Section 
59-1-214
.
(2)
There is created within the Income Tax Fund a restricted account known as the "Income 
Tax Surplus Restricted Account."
(3)
The account shall be funded by the revenue deposited into the account in accordance 
with Subsection (5).
(4)
(a)
The account shall earn interest.
(b)
The interest described in Subsection (4)(a) shall be deposited into the account.
(5)
After receiving from the commission an electronic report under Subsection 
59-1-214(6)(b)
 indicating the likelihood of a material increase in state income tax 
revenue, the Division of Finance shall, at the end of the fiscal year for which the 
material increase in state income tax revenue is expected, deposit into the account an 
amount of income tax revenue that is equal to the estimate of the amount of the material 
increase in state income tax revenue specified in the report.
(6)
Upon appropriation, the money in the account may be used for the purposes specified 
by the Legislature in accordance with Utah Constitution, Article X, Section 1.
Section 2, Section 
59-1-214
 is enacted to read:
59-1-214
. Reporting on federal tax law changes expected to result in a material 
increase in state income tax revenue.
(1)
As used in this section:
(a)
"Federal tax law change" means any modification to the Internal Revenue Code 
approved by Congress.
(b)
"Material increase in state income tax revenue" means a net increase in revenue the 
state is expected to receive from the income taxes imposed under this title for a fiscal 
year, as compared to the latest consensus revenue estimates adopted by the Executive 
Appropriations Committee, that is equal to or greater than .5% of the revenue the 
state received from the income taxes imposed under this title for the preceding fiscal 
year.
(c)
"Specified entities" means the commission, the Office of the Legislative Fiscal 
Analyst, and the Governor's Office of Planning and Budget.
(2)
The specified entities shall annually determine by consensus whether federal tax law 
changes will likely result in a material increase in state income tax revenue for:
(a)
the next fiscal year; and
(b)
the first taxable year in which the federal tax law change takes effect.
(3)
In determining whether federal tax law changes will likely result in a material increase 
in state income tax revenue under Subsection 
(2)
, the specified entities may consider:
(a)
federal tax law changes enacted in any taxable year;
(b)
legislative action to increase or offset increases in state income tax revenue; and
(c)
any other factors the specified entities determine to be relevant.
(4)
(a)
The commission shall submit to the Revenue and Taxation Interim Committee an 
electronic report on or before October 1 of each year in which the specified entities 
predict a material increase in state income tax revenue by consensus under 
Subsection 
(2)
.
(b)
The report described in Subsection 
(4)
(a) shall include:
(i)
a description of each federal tax law change expected to result in a material 
increase in state income tax revenue for the next fiscal year; and
(ii)
an estimate of the amount of the material increase in state income tax revenue that 
the state is expected to receive for the next fiscal year as a result of the federal tax 
law changes described under Subsection 
(4)(b)(i)
, based on consensus between the 
specified entities.
(5)
Upon receiving the report described in Subsection 
(4)
(a), the Revenue and Taxation 
Interim Committee shall:
(a)
review the information provided in the report; and
(b)
if the Revenue and Taxation Interim Committee decides to recommend legislative 
action to the Legislature in order to negate the material increase in state income tax 
revenue predicted for the next fiscal year, prepare legislation for consideration in the 
next annual general session.
(6)
(a)
If the commission submits a report under Subsection 
(4)
, the specified entities 
shall, following the Legislature's next annual general session, determine by consensus 
whether legislative action taken during the annual general session negates the 
specified entities' initial prediction of a material increase in state income tax revenue 
for the next fiscal year.
(b)
(i)
If the specified entities determine by consensus under Subsection 
(6)(a)
 that 
legislative action taken during the annual general session does not negate the 
specified entities' initial prediction of a material increase in state income tax 
revenue for the next fiscal year, the commission shall submit to the Division of 
Finance an electronic report on or before the June 1 following the annual general 
session.
(ii)
The report described in this Subsection 
(6)(b)
 shall include the information 
required by Subsection 
(4)(b)(ii)
.
Section 3. 
Effective Date.
This bill takes effect on 
July 1, 2025
.
3-6-25 2:01 PM