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Utah to Raise Gas Tax, Allow Local Tax Hike


 Utah Capitol

Lawmakers in Utah have agreed to raise the gas tax for the first time in nearly 20 years.

At the final hour of the legislative session, the House and Senate agreed to put aside their differences in order to reach accord. The final measure was approved 44-29 in the House and 20-8 in the Senate (Salt Lake Tribune).

Effective January 1, 2016, the gas tax will increase by approximately 5 cents per gallon. Automatic rate increases are set to start in approximately six to ten years, once the wholesale price of gasoline reaches $2.45 per gallon.

Local tax increase allowed

In addition to the gas tax hike, lawmakers have granted counties the right to seek voter approval for a sales tax increase of up to twenty-five cents per dollar. Revenue generated by the local option tax would fund local projects.

Businesses can stay on top of sales tax rate changes in all states. Learn more.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.