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Senate approves sales-tax diversion and registration-fee increases to bolster Centennial Highway Fund
Summary
The Utah Senate passed House Bill 413 and substitute House Bill 414 to redirect a 1/60 sales-tax diversion and increase vehicle registration fees; sponsors said the measures fund a new Centennial/Highway Fund and reimburse Olympic-related obligations before highway allocations begin.
The Utah Senate on March 5 approved a pair of measures that reshape how a small portion of state sales-tax revenue and vehicle registration fees are allocated to transportation projects.
House Bill 413, described on the floor by Senator Peterson as "the bill that takes the money that was diverted" to an Olympic fund and redirects the state's portion into a Centennial highway fund once Olympic obligations end, passed by roll call. The sponsor said the state—s share would flow into the Centennial fund and that cities would receive their share of the diverted amount.
Senators also passed substitute House Bill 414, which raises certain registration fees (a flat $10 increase for many passenger vehicles and a 10 percent increase for other classes). Floor remarks explained that the revenue from the registration-fee increase will be used in full for the Centennial Highway Fund as part of the broader transportation funding package. A House amendment that would have placed a sunset on the fee was removed on the Senate floor before final passage.
Floor votes recorded HB 413 as having 24 aye votes and no nays, and the Senate announced the bill would be signed in open session and returned to the House for final enrollment. Substitute HB 414 passed with a roll-call tally announced on the floor (15 aye, 9 nay, 5 absent) and will be returned to the House for consideration.
Why it matters: Sponsors said the combined steps supply a predictable revenue stream for highway construction and maintenance while honoring prior commitments to Olympic funding before redirecting state shares. The measures are part of broader transportation funding decisions taken by the Legislature this session.
What—s next: Both bills were returned to the House for final signature and enrollment; the president of the Senate will sign them in open session. Any implementation details about project prioritization and city allocations will follow through budgeting and administrative guidance.
Source material and attribution: Floor statements and roll-call results were read on the Senate floor during consideration of HB 413 and HB 414.
