Utah officials review gas tax incentives and local property tax hikes

Utah legislative leaders are re-evaluating tax incentives for gas production as state fuel prices continue to exceed the national average. Despite a recent law lowering the gas tax by 6 cents, Utah's average price of $4.36 per gallon remains higher than the $4.06 national average. House Speaker Mike Schultz expressed concern that the High Cost Infrastructure Tax Credit, which has provided $53 million to refineries since 2019, may be subsidizing exports to other states without lowering local costs.

In Ogden Valley, the City Council narrowly approved a budget for fiscal year 2026-2027 that includes a property tax increase of up to 512.6%. The hike aims to generate an additional $2.48 million for the new Weber County city. However, the legality of the increase is currently being challenged in the Utah Supreme Court following a determination by the Utah State Tax Commission that the city missed a procedural deadline.

If the court sides against the tax hike, city officials intend to implement a “skinny budget” alternative. This backup plan would rely on a new transportation utility fee for road projects, though it would generate significantly less revenue than the proposed property tax increase.