UT HB0231

Repeals county authority to impose up to 1% "restaurant tax" on food, beverages, and prepared foods sold at restaurants, convenience stores, gas stations, and grocery stores, effective October 1, 2026

Replaces the restaurant tax with a new tax on eligible taxable transactions (excluding food and food ingredients) at a rate calculated to generate equivalent revenue to the repealed tax based on 2025 collections

The replacement tax rate will be determined by the State Tax Commission using 2025 revenue data, rounded up to the second decimal place

Counties do not need to adopt new ordinances or provide notice for the automatic transition from the restaurant tax to the replacement tax on October 1, 2026

Takes effect May 6, 2026, amending Utah Code Sections 59-12-602 and 59-12-603 under the Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Act