Utah law limits broad fees and sets local transportation fee rules

Cities may not charge a general fee for broadband. Towns and cities may not charge a general fee for public safety services, with exceptions. These rules cover broad fees charged by Utah cities for broadband, and by towns and cities for public safety services. A general fee is charged broadly to the public or a segment of it. Fees for an identifiable person's use of a local service or facility, and program registration fees that cover administrative costs, are excluded. Towns may charge for volunteer public safety services or certain existing fees that pay for agreements with other local governments; the town council must renew agreement-based fees at least every three years. Only third-, fourth-, and fifth-class cities have the agreement-based exception; they may also charge for volunteer services. The law takes effect May 6, 2026. Cities and towns with prohibited public safety fees imposed before that date must repeal them by July 1, 2027. Cities with existing broadband fees generally must repeal them by July 1, 2027; specified bond-related fees may remain until the bond is paid and must then be repealed within 60 days.

Cities, towns, and counties may charge a transportation utility fee under rules for calculating, collecting, and spending it. Cities, towns, and counties may charge for eligible transportation facilities; a county fee applies to facilities owned and operated by the county. Before imposing or increasing a fee, the local government must study transportation needs, other available funding, and whether the fee reasonably relates to the services, benefits, or needs of those who pay. It must use traffic-based calculations and set rates for user groups on a reasonable basis; property value and whether a user lives inside the local boundary cannot be used to set rates. The government must give notice, hold a public hearing, adopt the fee by ordinance, and set up a way to appeal user classifications. Fee revenue must go into a separate transportation fund for eligible transportation costs and cannot replace existing general fund transportation budgets. The ordinance may be referred to local voters. The law takes effect May 6, 2026. A local government that charged a transportation fee before that date must meet the requirements or repeal the fee by July 1, 2027. Each fee expires 10 years after its ordinance takes effect; a later fee ordinance starts a new 10-year period.

A city or county that charges a transportation utility fee must review it each year and send a written report to the state auditor. This duty applies to a city or county that imposes a transportation utility fee. The review must check the fund balance and fee amount, whether the fee remains tied to users’ services, benefits, or needs, whether other funding could be used, and whether the fee is still needed. The report may be included with the local government's annual financial reports to the state auditor. Towns follow the city process. The annual review and written report are required while the transportation utility fee is in effect.