UT SB0116

Sets Utah's income tax rate at 4.5% for taxable year 2027, with potential automatic reductions through 2038 based on a formula comparing actual state revenue to forecast revenue targets ranging from $13.05 billion (FY2027) to $19.7 billion (FY2036)

Requires the Legislative Fiscal Analyst, State Tax Commission, and Governor's Office of Planning and Budget to annually determine between July 1 and October 1 whether actual revenue exceeded forecasts, with half of any surplus funding rate reductions in 0.01 percentage point increments

Changes mineral production tax withholding from a fixed 5% rate to the variable income tax rate, affecting payments made to mineral rights holders in Utah

Mandates the State Tax Commission publish the applicable income tax rate by November 1 each year for the following taxable year beginning January 1

Contains sunset provisions repealing the automatic rate adjustment mechanism on July 1, 2038, after which the rate remains fixed at whatever level was reached in the preceding taxable year