State’s HB456 raises lodging taxes, creates mitigation grant and narrows local spending rules

Summary

House Bill 456 increases the statewide transient room tax by 0.75 points (to 1.07%) and allows counties to raise their local TRT by 0.25 points (up to 4.5%). The law narrows allowable uses, creates an Outdoor Recreation Mitigation Grant, and changes reporting and revenue‑tier requirements that will affect Emery County’s tourism budgets.

Selena Sinclair, executive director of the Utah Tourism Industry Association, told the Emery County Travel Board on May 13 that House Bill 456 — a sprawling, 1,000‑plus‑line bill — makes several changes to how lodging taxes are collected and spent.

Sinclair said the law increases the statewide transient room tax (TRT) by 0.75 percentage points, bringing the state TRT to 1.07%, and that the Utah State Tax Commission will implement that increase automatically on July 1, 2025. "This increase is going to be automatically enacted by the Utah State Tax Commission on 07/01/2025," Sinclair said.

Why it matters: Sinclair said roughly 0.5 percentage points of the statewide increase will go into a Long‑Term Capital Projects Fund for visitor‑economy projects, while 0.25 percentage points will fund a new Outdoor Recreation Mitigation Grant aimed at reimbursing counties for visitor‑related emergency and safety costs.

The bill also creates a local option: counties may adopt a 0.25 percentage‑point increase to their county TRT (raising the county maximum from 4.25% up to 4.5%) by resolution. Sinclair emphasized that county adoption must be done locally: "It can go into effect on or after July 1 … This…

State’s HB456 raises lodging taxes, creates mitigation grant and narrows local spending rules

Summary

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