UT HB0107

Creates a nonrefundable income tax credit for a portion of sales and use tax paid on a replacement vehicle when a person buys and sells two motor vehicles within 30 days of each other, or purchases a replacement vehicle within 30 days of receiving an insurance payout for a totaled vehicle

Establishes the Motor Vehicle Sales Tax Restricted Account within the General Fund, funded by penalties from vehicle registration violations, to finance the tax credit program

Imposes a late registration penalty for each month a vehicle registration fee is not paid by the end of the month following expiration, with penalties accruing for up to 11 months at a rate matching the uniform fine schedule for registration violations

Increases the penalty for vehicle/vessel tax and fee violations from $500 to $650 and eliminates the 60-day cure period previously allowed before penalties were imposed

Effective May 6, 2026 for most provisions, with the income tax credit provisions taking effect January 1, 2027