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Legislation codifies transportation utility fee rules, requires traffic-based methodology and 10-year reauthorization
Summary
House Bill 425 codifies local authority to adopt transportation utility fees, requires traffic‑or trip‑based methodologies (not property value), mandates studies and dedicated accounts, and sets a 10‑year expiration for fees, League staff said during the webinar.
League staff and tax-policy advisers reviewed House Bill 425, which codifies the authority for municipalities to adopt transportation utility fees and sets implementation guardrails. Presenters traced the fee’s history to Provo and the Pleasant Grove litigation and said the Utah Supreme Court left unresolved the reasonableness of particular fee amounts.
Under HB425, a municipality that wants a transportation utility fee must complete a study documenting transportation…
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