House trims proposed transfer to transportation fund to 30% of new growth and approves S.B. 229

The Utah House on March 10 amended and approved Senate Bill 229, changing an amendment from 40% to 30% of new growth in automobile‑related sales‑tax revenue to be dedicated to the Transportation Investment Fund (TIF).

Representative Deeb (identified on the floor as Representative D) explained the amendment reduces the share moved from growth in automobile sales‑tax receipts from 40% to 30%, saying he thought 40% was “a little bit too much at this particular time.” He noted a fiscal note at 40% had projected a $79 million infusion in 2013 but acknowledged the 30% figure would yield a lower amount.

Opponents raised concerns that diverting sales tax revenue moves funding away from the benefits principle — that drivers should largely pay for roads — and could reduce money available for higher education, health and corrections. Representative Frisco said the shift “moves us further away from the benefits principle of taxation” and warned that sales‑tax diversions have previously reduced funding for K‑12 and higher education.

Supporters said TIF funds would be prioritized for bridge replacement, road construction and maintenance and provide a means to address critical transportation needs without raising the gas tax. Representative Deeb and other advocates said the mechanism helps invest in infrastructure that supports statewide economic growth.

After debate and a summation by the sponsor, the House passed S.B. 229 as amended, 60 yes to 10 no. The bill will be transmitted to the Senate for further consideration.