Lawmakers say gas-tax overhaul is possible as they seek supply solutions to curb prices
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Summary
Lawmakers discussed a prospective gas-tax bill aimed at broadening the tax base and lowering rates while seeking ways to increase supply; Speaker 1 said the goal is to bring more fuel into the region and noted concern about refinery pressure in California and a possible tax shift affecting in-state production.
Speaker 1 briefed members on ongoing work on a gas-tax bill and framed the problem primarily as a supply-and-demand issue rather than a simple revenue change. They said the Legislature is still negotiating details but intends to run a bill, and they emphasized efforts to increase supply into the Utah market to blunt price increases.
Speaker 1 described pressure on refineries from California and expressed concern that continued production reductions there could worsen regional prices. They said policymakers are exploring both supply solutions and tax-structure changes; specifically, broadening the tax base to lower the rate would shift how refinery-level and retail taxes apply. Speaker 1 stated that currently about half of the gas produced in Utah is not taxed under existing rules, and that changing collection points could increase the taxed base.
Members asked about interstate impacts and whether Idaho or other neighbors were affected; Speaker 1 said they do not expect the proposal to harm Idaho, but acknowledged that industry actors had framed the issue as pitting states against one another. No vote or bill language was adopted in this meeting; Speaker 1 said work would continue.