H.B. 216

# H.B. 216 Plain-Language Summary H.B. 216 establishes a process to identify and set aside unexpected increases in Utah state income tax revenue caused by changes to federal tax law. The bill requires the State Tax Commission, Legislative Fiscal Analyst, and Governor's Budget Office to jointly determine each year whether federal tax changes will significantly boost state income tax revenue (defined as a 0.5% or greater increase), and if so, to report their findings to the Legislature's Revenue and Taxation Committee. If the Legislature does not pass laws to offset this revenue increase during the next legislative session, the state will deposit the estimated surplus amount into a newly created Income Tax Surplus Restricted Account, where it can only be used for purposes the Legislature specifically authorizes. This mechanism gives lawmakers an opportunity to prevent unplanned tax revenue windfalls from automatically accumulating in state coffers.